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- Topic: Question on Money Weighted solution to Example 5
|Author||Topic: Question on Money Weighted solution to Example 5|
|I was going through the example on page 226 of Volume 1 of Level 1 relating to the time weighted and money weighted rates of return.
The time weighted calculation is clear enough, but I cannot seem to figure out why the inflows and outflows of $2 and $20 are placed under the first four month interval and not the second interval. I know it doesn't make much of a difference because its an approximation anyway, but it would be nice to understand the reasoning behind it.
Any help would be much appreciated.
CFA Discussion Topic: Question on Money Weighted solution to Example 5
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.