Common Themes: “Dietz-Style Equations”

Posted by admin - September 20, 2013 - CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM formulae, CIPM formulas, CIPM Principles, estimated time-weighted return, Modified Dietz, Original Dietz, return measurement, time-weighted return, true time-weighted return, TWR

For today’s post, I’d like to review some of the “Dietz-style” formulae we use to calculate true time-weighted return and estimated time-weighted return. I’ve never actually seen the formulae presented this way, but hopefully doing it in this fashion will help candidate see that we are using essentially the same basic formula in all of […]

Why Don’t We Annualize Returns of Less Than One Year?

Posted by admin - August 6, 2012 - annualization, CIPM Exam Tips & Tricks, CIPM expert, CIPM formulae, CIPM Principles, geometric linking, GIPS, time-weighted return

Most performance analysts have heard it said that we should never annualize returns of less than one year. Some may also be aware that GIPS provision I.5.A.4 (2010 edition of GIPS) forbids compliant firms from annualizing returns for periods of less than a year? But why shouldn’t this be done? Certainly, we could do it […]

List of Formulae – Principles Level

Posted by admin - March 20, 2012 - attribution analysis, CIPM, CIPM Exam Tips & Tricks, CIPM formulae, CIPM formulas, CIPM Principles, performance calculations, performance measurement, rate of return calculations, risk calculations, risk measurement

I am teaching The Spaulding Group’s prep class for the CIPM Principles and Expert level exams this week in Chicago, and it became apparent to me that most of the students in the class were not aware that CFA Institute has a “List of Formulas” document as part of the curriculum that candidates are responsible […]