MWR和TWR的具体数

问题如下：

At the commencement of Year 1, an investment portfolio manages $15 million, realizing a gain of 11% during that year. During Year 2, an additional net inflow of $120 million is attracted, and the portfolio achieves a 6% gain for that year. What is the most likely relationship between the money-weighted rate of return (MWR) and the time-weighted rate of return (TWR) for the portfolio over this period?

选项：

A.

MWR is expected to be lower than TWR.

B.

MWR is expected to be equal to TWR.

C.

MWR is expected to be higher than TWR.

解释：

The money-weighted rate of return (MWR) takes into account the timing and amounts of investments, while the time-weighted rate of return (TWR) focuses only on the geometric mean return of individual periods. In this scenario, because new investments are made at different times, the MWR is likely to be affected by the larger investment during Year 2, resulting in a lower MWR compared to TWR.