Question: Set up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio. Year 0 1 2 3
Set up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio.
Year 0 1 2 3 4
Actions at the ending of the year (Yr0)Starting with $1000 (Yr1)Adding $100 (Yr2)Withdrawing $200 (Yr3)Adding $300 (Yr4)Ending Value = ?
ROR during each Yr (Yr0) - (Yr1) 8% (Yr2)-4% (Yr3) 9% (Yr4) 3%
A. Calculate the time weighted return (TWR)
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