Money-weighted returns is a measure of the rate of return for a portfolio that sets the present value of all cash flows and terminal values equal to the initial investment. The money-weighted rate of incremental irr investopedia forex assumes that the same rate of return is earned during each “subperiod” of an investment horizon. It essentially solves for the rate of return that makes the present value of the investment exactly equal to the present value of the future cash flows.

2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. The number of years of investment. 50,000 annually in years 1 and 2 on account of trading losses.