Modified Dietz method: Difference between revisions

Revision as of 21:14, 27 January 2022

Revision as of 18:54, 22 November 2022

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|publisher=Institute of Chartered Financial Analysts.

|page=72

|quote=A slightly improved version of this method is the day-weighted, or modified Dietz, method. This method adjusts the cash flow by a factor that corresponds to the amount of time between the cash flow and the beginning of the period.}}</ref> The original idea behind the work of Peter Dietz was to find a quicker, less computer-intensive way of calculating an IRR as the iterative approach using the then -quite -slow computers that were available was taking a significant amount of time; the research was produced for BAI, Bank Administration institute.{{Citation needed|date=October 2017}}

==Formula==