CFA CFA Level 3 Portfolio Management TWRR vs MWRR

Portfolio Management TWRR vs MWRR

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    • Avatar of frankthethankfrankthethank
      Participant
        • CFA Level 3
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        4
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        Yup that’s all the info, expect that kind of question in level 3…

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        A portfolio manager is EXPECTING a cash flow inflows in 17 days. Should he calculate his future return using TWRR or MWRR?

        Is that all the information the question gave?

        If so, I would go for TWRR (investing when you’ve received money) rather than MWRR (investing at a timing of your choosing).

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        Agree with TWRR. I think about it this way: if the PM can’t invest according to THEIR timeline, TWRR.

      • Avatar of frankthethankfrankthethank
        Participant
          • CFA Level 3
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          So since he does not have total control I guess we should use TWRR

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