Concept: TWRR

CFA Level I Glossary

Time-weighted rate of return measures the compound growth of a single unit of currency invested in the portfolio over a period. You chain sub-period returns so external deposits and withdrawals do not distort manager performance. It is the standard for evaluating investment managers. The usual confusion is with money-weighted return, which reflects the size and timing of client cash flows.

Sign up free — get all 175 CFA Level I terms, flashcards & rank tracking →

More CFA Level I terms

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 77,980+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials