Simple Dietz method: Difference between revisions

Revision as of 11:45, 15 September 2014

Revision as of 08:36, 20 September 2014

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:<math>{M_2} = {M_1} + C + {RM_1} + RC/2</math>

This formula

:"reveals that the market value at the end pfof any period must be equal to the beginning market value plus net contributions plus the rate of return earned of the assets in the fund at the beginning of the period and the return earned on one-half of the contributions. This assumes contributions are received midway through each investment period, and alternately, that half the contributions are received at the beginning of the period, and half at the end of the period."<ref>Ibid. page 51</ref>

== See also ==