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3A. Set up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio. Year 0 1 2
3A. Set up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio.
Year | 0 | 1 | 2 | 3 | 4 |
Actions at the ending of the year | Starting with $1000 | Adding $100 | Withdrawing $200 | Adding $300 | Ending Value = ?
|
ROR during each Yr | - | 8% | - 4% | 9% | 3% |
3 B. Calculate the time weighted return (TWR)
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