Modified Dietz method: Difference between revisions

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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 the fact that the returns are large.
 
'''''This annualizedIRR calculation is incorrect above - the IRR is actually 50%: 100 x (1 + 50%)^2 + 50 x (1+50%) = 300'''''
 
==The simple Dietz method==