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Line 28: \|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}} The modified Dietz method is a linear IRR. ==Formula==

Modified Dietz method: Difference between revisions