Calculate the time-weighted returns

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Given the following cash flow and holding period returns (HPRs), calculate the time-weighted returns (TWR) from the HPRs and the IRR from the cash flow (sometimes called the dollar-weighted returns).

 

 

Year-End

Holding 

Year

Cash Flow

Value

Period Return

0

($100,000)

 

 

1

$10,000

$105,000

15.0%

2

$4,000

$90,000

-10.5%

3

$9,000

$102,000

23.3%

4

$15,000

$128,000

40.2%

5

$165,000

$145,000

28.9%

Reference no: EM133112625

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