How Do You Spell TIME-WEIGHTED?

Pronunciation: [tˈa͡ɪmwˈe͡ɪtɪd] (IPA)

The word "time-weighted" is spelled as /taɪm-weɪtɪd/ in IPA phonetic transcription. The first syllable is pronounced with a long "I" sound, followed by the "m" sound. The second syllable begins with the "w" sound, followed by the "ay" diphthong and the "t" sound. The third syllable starts with the short "i" sound, followed by the "d" sound. This term is commonly used in the financial industry to describe an investment performance calculation method that takes into account the length of time an investment is held.

TIME-WEIGHTED Meaning and Definition

  1. Time-weighted is an adjective that is commonly used in finance and investment contexts to describe a method of calculating or measuring the performance of a financial instrument or portfolio over a given period. This approach is designed to eliminate the impact of cash flows and external factors on the overall performance calculation, focusing instead on the investment's inherent return.

    When a time-weighted methodology is employed, the returns or changes in value are calculated based on the time that each dollar amount has been invested. This means that the impact of any additional investments or withdrawals made during the period is effectively neutralized.

    This method is often considered more accurate and fair because it ensures that the performance is attributed solely to the investments made and their duration. By eliminating the influence of external factors, such as the investor's actions, market timing, or the size and timing of cash flows, a more accurate representation of the investment's actual performance can be obtained.

    Time-weighted returns are particularly important in assessing the skill of investment managers, as they provide a true reflection of the investment decisions made, regardless of when money was invested or withdrawn.

    Overall, the time-weighted approach is a method used to measure the performance of investments by accounting for the duration and magnitude of each investment, thereby providing a more accurate picture of their actual performance.

Common Misspellings for TIME-WEIGHTED

  • rime-weighted
  • fime-weighted
  • gime-weighted
  • yime-weighted
  • 6ime-weighted
  • 5ime-weighted
  • tume-weighted
  • tjme-weighted
  • tkme-weighted
  • tome-weighted
  • t9me-weighted
  • t8me-weighted
  • tine-weighted
  • tike-weighted
  • tije-weighted
  • timw-weighted
  • tims-weighted
  • timd-weighted
  • timr-weighted
  • tim4-weighted

Etymology of TIME-WEIGHTED

The word "time-weighted" consists of two parts:

1. Time: This comes from the Old English word "tim(e)" which originally meant "a stretch or period of time" and has its roots in Proto-Germanic.

2. Weighted: This is derived from the verb "to weigh" which can be traced back to the Old English word "wegan" meaning "to carry, move, or bear". It is related to the Old Norse word "vega" and has Germanic origins.

When combined, "time-weighted" refers to a method or system that assigns different levels of importance or significance to different periods or stretches of time.

Infographic

Add the infographic to your website: