Simple Dietz method: Difference between revisions

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{{notability|date=November 2010}}
 
The '''simple Dietz method''' is a means of calculating an approximation of investment portfolio performance during a period of external cash flows into/out of the portfolio.<ref>Dietz, Peter O. ''Pension Funds: Measuring Investment Performance''. Free Press, 1966.</ref> It addresses some of the weakness of the [[Internalinternal Raterate of Returnreturn]] (IRR) calculation.
 
The simple Dietz method calculates performance as follows: