Crossing return gaps to meet client requests

Return gaps can often occur. And so, there are times when we might want to be able to “cross” them: that is, to extend performance¬†across this gap, so that we have a continuous return. However, there are times when the manager may not want to cross it, but...

Hidden Figures in Performance and Risk Measurement

Hidden Figures: the¬†movie My wife and I recently saw the movie “Hidden Figures,” which is about the contributions that three black women made to the U.S. space program, starting in the early 1960s. It takes place in Virginia, which at that time was still a...
Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part I

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

I have covered the steps to calculating internal rate of return in a few different posts on the blog, including here, here and here.  I have also covered the steps to use the cash flow worksheets of the TI BA II Plus and the HP 12 C.  You may have read the...
Performance with Leverage:  Part II

Performance with Leverage: Part II

Yesterday, I covered return calculation for a portfolio with leverage.  To review, the background information is:The investor wants to acquire a 500 million euro property but only has 400 million in cashThe investor borrows 100 million euro in order to acquire...

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