[CFA Level I] 17, Time-Weighted and Money-Weighted Performance

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How time-weighted return isolates investment performance by removing cash flow timing effects. - How money-weighted return calculates internal rate of return based on client deposits and withdrawals. - Why fund managers are evaluated using time-weighted return unless they control external cash flow timing. - How annualizing returns on equal periodicity reveals the divergence between time-weighted and money-weighted performance. - The decision rule for matching performance metrics to manager evaluation and investor experience. This independent prep episode supplements your official study resources. Practice at https://open-exam-prep.com/practice/cfa-level1 and watch video walkthroughs on https://www.youtube.com/@Open-exam-prep . Sources checked: October 12, 2026 https://www.cfainstitute.org/programs/cfa-program/candidate-resources/level-i-exam https://www.cfainstitute.org/sites/default/files/2027levelitopicoutline_online.pdf