forwhat

Time Weighted Return:

 

A:

r_a1=(38+1.5-35)/35=12.86%

r_a2=(37+2-38)/38=2.63%

 

r_a=(1+r_a1)*(1+r_a2)-1=15.83%

 

B:

r_b1=(38+1.5-35)/35=12.86%

r_b2=(37+2-38)/38=2.63%

 

r_b=(1+r_b1)*(1+r_b2)-1=15.83%

 

--> A=B

 

Money Weighted Return

A:

CF_a0=-35,000

CF_a1=1,500

CF_a2=39,000

 

=>  IRR_a=7.72%

 

B:

CF_b0=-17,500

CF_b1=-18,250

CF_b2=39,000

 

=> IRR_b=5.99%

 

--> A>B