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Time weighted return with one period of 100% loss
If an investment has the returns listed below (the final period being 100% period loss) and pays out one dividend along the way is the time weighted return -100%?
Assume $100 investment
Q1: 10%
Q2: -10%
dividend of $30 (not reinvested)
Q3: -20%
Q4: -100%
cumulative return = (1.1)(0.9)(0.8)(0.0)-1
=-100% |
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