What is Money-weighted Rate of Return?

The Money-weighted Rate of Return (MWRR) calculates the performance of a REP (Resale Endowment Policy) that accounts for the amounts and dates of takeover, premiums, cash coupons, maturity benefit and other cash benefits.

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Due to the nature of the equation, the MWRR has to be solved using an efficient and iterative approach with O(log n) time complexity.

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Because of the MWRR taking amounts and dates into account, it is a better representation of the REPs' performance as compared to simpler ones such as "Simple Interest Per Annum" or "Annualised Returns".

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The MWRR is also known as XIRR (eXtended Internal Rate of Return).

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