At the beginning of a 30 day month, Buttercup Dickerson owned a portfolio valued at $5,000 On day 10, Buttercup 's portfolio was worth $7,300 after a $2,000 contribution had been made on that day At the end of the month, the portfolio was worth $9,690 18 Calculate both the time weighted and dollar ...

Calculating the timeweighted return for a portfolio involves valuing the portfolio whenever a cash f ...

At the beginning of a 30-day month, Buttercup Dickerson owned a portfolio valued at $5,000. On day

Question:

At the beginning of a 30-day month, Buttercup Dickerson owned a valued at $5,000. On day 10, Buttercup's was worth $7,300 after a $2,000 contribution had been made on that day. At the end of the month, the was worth $9,690.18. Calculate both the time-weighted and dollar-weighted returns on Buttercup's for the month. Why do the two returns differ so substantially?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...