Money-Weighted Rate of Return
Money-weighted rate of return (MWRR) is a measure of investment performance that accounts for the timing and amount of cash flows. It reflects the investor's actual return, considering the effect of contributions and withdrawals.
Key Takeaways
- MWRR measures investment performance including cash flows.
- Reflects actual return for investors.
- Accounts for timing and amount of contributions and withdrawals.
- Useful for evaluating personal investment returns.
