Modified Dietz as an alternative to the IRR: does it make sense?

One of those confusing things in the world of performance measurement: Modified Dietz Modified Dietz is one of the most commonly used return measures. Granted, Peter Dietz probably never referred to it as “Modified” (he called it...
Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part II

Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part II

In my last post, I covered a “fast” way to solve multiple choice internal rate of return exercises.  In today’s post, I look at a second quick method.Recall the details from the last post:Account market value on 3/31 is $56.3 millionAccount...
Common Themes:  “Dietz-Style Equations”

Common Themes: “Dietz-Style Equations”

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...

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