The time-weighted return (TWR, TWRR, TWOR or TTWROR for true time-weighted rate of return) is a method of calculating investment return, where returns over sub-periods are compounded together, with each sub-period weighted according to its duration. The time-weighted method differs from other methods of calculating investment return, in the particular way it compensates for external flows.
The time-weighted return (TWR, TWRR, TWOR or TTWROR for true time-weighted rate of return) is a method of calculating investment return, where returns over sub-periods are compounded together, with each sub-period weighted according to its duration. The time-weighted method differs from other methods of calculating investment return, in the particular way it compensates for external flows.
Source: Wikipedia "Time-weighted return" · CC BY-SA 4.0
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