Revision as of 04:51, 6 July 2023 edit Cedar101 (talk \| contribs) Extended confirmed users 18,557 edits →Excel VBA function for modified Dietz return: fix syntaxhighlight error ← Previous edit		Revision as of 00:47, 1 September 2023 edit undo Jonazo (talk \| contribs) Extended confirmed users 904 edits →Example Next edit →
Line 117: :<math>100 \times (1 + 125\%)+ 50 \times (1+125\%)^ \frac{2 - 1}{2} = 225 + 50 \times 150\% = 225 + 75 = 300</math> so in this case, the modified Dietz return is noticeably less than the unannualized IRR. This divergence between the modified Dietz return and the unannualized internal rate of return is due to a significant flow within the period, ~~and~~together with the fact that the returns are large. If there are no flows, there is no difference between the modified Dietz return, the unannualized IRR, or any other method of calculating the holding period return. If the flows are small, or if the returns themselves are small, then the difference between the modified Dietz return and the unannualized internal rate of return is small. The IRR is 50% since:

Modified Dietz method: Difference between revisions