Twrr vs mwrr, Twrr Mwrr Ytm

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Time-Weighted Rate of Return (TWRR) vs Money-Weighted Rate of Return (MWRR) vs Yield to Maturity (YTM) are different performance metrics used in finance.

TWRR measures the compound rate of growth in a portfolio, unaffected by cash flows.
MWRR takes into account the timing and amount of cash flows in and out of the portfolio.
YTM is the total return anticipated on a bond if the bond is held until it matures.
TWRR is more suitable for evaluating the performance of investment managers, while MWRR is more relevant for individual investors.
Example: If an investor adds more money to their portfolio during a period of strong performance, MWRR will be higher than TWRR.
Example: YTM helps investors compare the expected return on different bonds.

Twrr vs mwrr, Twrr Mwrr Ytm

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