- Time-weighted rate of return
- Related: Geometric mean return. The New York Times Financial Glossary
Financial and business terms. 2012.
Time-weighted rate of return
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Time-Weighted Rate of Return — A measure of the compound rate of growth in a portfolio. Because this method eliminates the distorting effects created by inflows of new money, it is used to compare the returns of investment managers. This is also called the geometric mean… … Investment dictionary
time-weighted rate of return — Related: geometric mean return … Financial and business terms
Money-Weighted Rate Of Return — A measure of the rate of return for an asset or portfolio of assets. It is calculated by finding the rate of return that will set the present values of all cash flows and terminal values equal to the value of the initial investment. The money… … Investment dictionary
Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia
internal rate of return — ( IRR) A measure of yield that relates the cash flow from each interest payment and the cash flow from the investment s redemption value at maturity to the purchase price of the investment. It is a present value calculation that reflects the time … Financial and business terms
Minimum acceptable rate of return — In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the… … Wikipedia
Modified internal rate of return — The modified internal rate of return (MIRR) is a financial measure of an investment s attractiveness.[1][2] It is used in capital budgeting to rank alternative investments of equal size. As the name implies, MIRR is a modification of the internal … Wikipedia
Geometric mean return — Also called the time weighted rate of return, a measure of the compounded rate of growth of the initial portfolio market value during the evaluation period, assuming that all cash distributions are reinvested in the portfolio. It is computed by… … Financial and business terms
geometric mean return — Also called the time weighted rate of return, a measure of the compound rate of growth of the initial portfolio market value during the evaluation period, assuming that all cash distributions are reinvested in the portfolio. It is computed by… … Financial and business terms
Weighted — A mathematical process by which figures and/or components are adjusted to reflect importance by value or proportion. A weighted average, for example, takes into account the proportional relevance of each component, instead of measuring each… … Investment dictionary
