Time-weighted rate of return account, return, because, different, beginning

pilgrimage

"The time-weighted rate of return for the portfolio was 15.84% while the money-weighted rate of return for the same portfolio was 13.86%. The results are different because the money-weighted rate of return gave a larger weight to the Year 2 HPR, which was 10%, versus the 22% HPR for Year 1. This is because there was more money in the account at the beginning of the second period."
我想请教一下为什么在second period有更多的beginning money会导致money－weighted rate of return在第二年的HPY上有更大的权重啊？谢谢大家了！！！

adjani.zhang

个人看法，这仅是数学问题，而不是金融知识问题

money-weighted rate of return: 13.86%
HPR1: 22%
HPR2: 10%
显然HPR2权重更大，如果一样，那么是16%了

pilgrimage

回复 2# adjani.zhang


    谢谢回复！

rut

time weighted return =((1+HPY1)*(1+HPY2)*....N)-1

Money weighted return = IRR