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Once you start using it new questions come up ;-) I probably make it far too complicated but I do want to understand it.

First Question for Jack:
What I understand is that there are two return calculations (did some google search ;-))
1. Money weighted return calculation -> the return experienced by the investor.
2. Time weighted return calculation -> the return produced by the manager.

The IRR is used in the Money weighted calculation. So I think you refer to a different performance measure then Mike or not?

Second question to Mike:
What how come that in the calculation we are only interested in the addition or subtraction of cash and not the total cash on hand? Does this mean that the calculation assumes that in the next period (month in our case) the cash is invested and that hence the BMV increases?

Appreciate your help.

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