What if the difference between MIRR and MWRR difference, between, return

Chuckrox8

MWRR(money-weighted rate of return) is IRR(internal rate of return). But the formula of MIRR(modified IRR) looks the same as MWRR. Are the two the same thing?

MWRR is on Schweser Notes 5, page 74. -- SS17
MIRR is on Schweser Notes 5, page 185. -- SS18

zwjy

I think these two shall be same. Maybe you can verify by calculating a longer period's return.

mik82

Please Refer to CFAI text Vol 6

In Example 4 (P.130) & Example 5, the returns calculated by TWR & MWR are almost same. Furthermore, the footnote 19 at the bottom of P.286 stated that "MIRR" approximates a TWR. But the return (0.41%) calculated using True TWR and the return (0.51%) calculated using MIRR (MWRR?) are quite different.

Now there are 2 questions :
1. MIRR = MWRR ?
2. True TWR = TWR ? Why it is said "True" ?

bpdulog

By the way, the question should be

"What is the difference between MIRR and MWRR?"