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Computing time weighted rate of return

Felix edited this page Jun 6, 2014 · 1 revision

An investor purchases a share of stock at t = 0 for $10. At the end of the year, t = 1 , the investor buys another share of the same stock for $12. At the end of Year 2, the investor sells both shares for $13 each. At the end of both years 1 and 2, the stock paid a $1 per share dividend. What is the annual time-weighted rate of return for this investment?

twrr(ev = c(12, 26), bv = c(10, 24), cfr = c(1, 2))
[1] 0.2315
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