How would you calculate the following time weighted return over the period 2000-2010?

2003-2008 are periods with a value of zero. Therefore no return can be calculated.

2000: +10% HPR (Holding period return)

2001: +10% HPR

2002: +10% HPR (12/31: position closed)

2003: no position

2004: no position

2005: no position

2006 no position

2007: no position

2008: no position

2009: +10% HPR (01/01: position opened)

2010: +10% HPR

IRR calculation is straightforward an easily adjusts for periods without investment.

date | cash flow |
---|---|

2000-01-01 | -100 |

2002-12-31 | 133 |

2009-01-01 | -100 |

2010-12-31 | 121 |

IRR | 10% |

is 1.10^5 the **time weighted return**? Is the **annualized time weighted return** \sqrt[5]1.10^5 or \sqrt[10]1.10^5?