A client invested $100 in a mutual fund at the start of the month. After 20 days, the portfolio gained 10% (i.e., value = $110),
A client invested $100 in a mutual fund at the start of the month. After 20 days, the
portfolio gained 10% (i.e., value = $110), and the client added an extra $50 (total portfolio
value=$160). From day 20 to day 30, the portfolio lost 9.09%--the final portfolio value is $160×(1-
0.0909)=$145.46. Calculate the money-weighted return and time-weighted return. Which rate of
should you use to evaluate the performance of the mutual fund manager? What is the formula and how can i calculate this on financial calculator?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
MoneyWeighted Return MWR is also known as the Internal Rate of Return IRR and represents the effecti...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Bruno Solnik, Dennis McLeavey
6th edition
321527704, 978-0321527707
