LANDMARK ARTICLE: A Primer of Time-Weighted and Dollar-Weighted Return
Steven J. Lerit, CFA, Stifel Financial Group

In this first of a two-part series the author reviews time-weighted and dollar-weighted return measures. He discusses some of the more common methods jar approximating true time-weighted return and describes the formulas involved Part two will include detailed examples that demonstrate when the approximations deviatejrom true time-weighted returns.