What is the time weighted return

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Time weighted vs. dollar weighted return: An investor deposits $10,000 at the beginning of Year 1. One year later, the investment has earned a total return of 20%, or $2000. An additional $50,000 is added at the beginning of Year 2 and earns 6%, for $3,270. At the beginning of Year 3 $25,000 is added and earns 10% for $9,072. At the end of Year 3, the account value is $99,792.

What is the time weighted return and what is the dollar weighted return for this investment over the three years?

Reference no: EM131402241

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