I came across a money weighted rate of return question in a Schweser exam earlier… I knew the principle and manually worked through intputs/returns…unfortunately the correct answer was “D”, which meant I already worked through A,B &C. This took me forever and if there were 10 of these questions in the exam, I may need the 3 hours! I assume this is a legitimate question we may expect in the exam, other than starting with D next time, is there a quicker way to get to the solution?..Cheers!
If you use CF in your calculator, IRR can be easily obtained.
I’m embarassed to say this but for some reason I spend way too much time on these calculations. I ace every other quant question but throw me a money weighted question and I’m a f’in dunce. Someone confirm for me if this is right initial is always - you put more money in it’s + you sell a stock or take money out it’s - final value is + Any easier way to think of this? I know one or two of these are going to come up.