Global Definitions Database

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Geometrically linked TWR

A process by which sub-period returns are averaged to arrive at a period's rate of return. The linking formula is: (1 + S1) x (1 + S2) x ... (1 + Sn) - 1, S1 - is the first sub-period return , S2 - is the second sub-period return , and Sn - is the last sub-period return.

Source: NCREIF PREA | Date: 29 April 2020 | ID: D0154 | Version: 3