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Time-Weighted Return

What Is Time-Weighted Return? Time-weighted return (TWR) is a method of measuring investment performance that accounts for the impact of cash flows and the timing of those flows. This method is ...
Being under the illusion that you are earning a high rate of return when your true return is sub-par often leads to overconfidence, which is a performance killer. Money-weighted returns (also called ...
Focusing on the nominal rate of return can give you a false idea of how much income you’ll receive from your investments. Instead, the real rate of return will help you understand how much money ...