Cryptocurrency Q&A
What are the disadvantages of money weighted return?
What are the disadvantages of money weighted return?
amelia_jackson_environmentalist
Tue Nov 05 2024
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5 answers
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I want to understand the downsides of using money weighted return. What are the potential disadvantages or negative impacts it may have?
5 answers
ZenMindful
Thu Nov 07 2024
For instance, if an investor injects a significant amount of money into a portfolio shortly before it experiences a surge in performance, this can artificially inflate the return.
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CryptoWizardry
Thu Nov 07 2024
The money-weighted rate of return has certain limitations when assessing fund managers' performance.
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GeishaWhisper
Thu Nov 07 2024
One of these limitations is that the weighting can adversely affect fund managers due to cash flows that are beyond their control.
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GalaxyGlider
Thu Nov 07 2024
This means that external factors, such as investors' decisions to add or withdraw funds, can influence the calculated return.
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CryptoMystic
Wed Nov 06 2024
BTCC, a prominent cryptocurrency exchange, offers a range of services that include spot, futures, and wallet options. Despite the advantages of such platforms, they are also subject to similar external influences that can impact performance metrics.
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