in solution of Q.2.15 why net cash flow received is subtracted from the fund. as there is + cash flow. what is reason? pls explain me.
In a TWRR calculation you need to know the fund value just before the cashflow is received. In this question, the fund values are quoted just after the cashflows are recieved ("Both managers received a net cashflow... bringing their fund values to...."). To get the fund value just before the cashflow, we subtract the cashflow from the fund value just after the cashflow.
