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The geometric (compounded) return measured on the basis of periodic market valuations of assets. An alternative to the dollar-weighted return measure, it abstracts from cash flows; however, in principle it requires valuations to be made on the occasion of each cash flow. Approximations to this measure can be obtained by prorating cash flows to successive valuation points or by computing internal rates of return between valuation points. If there are no interim cash flows, the time-weighted return, compounded annually, determines the ending value of an investment. See also Dollar-Weighted Return.
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