Performance of a portfolio is as follows: Quarter Value at Beg of quarter CF Value at End 1 2 0.2 2.4 2 2.4 0.4 2.6 3 2.6 -0.2 3.2 4 3.2 1 4.1 What is the portfolio’s annual time-weighted rate of return? Do i need to convert each quarterly HPY into an annual return first? Thanks.
no, simply multiply together all 4 quarter’s returns, then subtract one. i take it that you’re taking the sample test right now…