A calculate his annualized time weighted return twr b


An investor bought 100 shares at $5.50 each. After one year, he received $0.75 dividend per share and he bought 50 more shares at $5.89 each. After two years, he received $0.65 dividend per share for all the holdings and he sold all the shares for $6.15 per shares.

a) Calculate his annualized Time Weighted Return (TWR).

b) Calculate his annualized Money Weighted Return (MWR).

c) Which one should be more preferred by regulators? Explain.

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Basic Statistics: A calculate his annualized time weighted return twr b
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