Modified Dietz method: Difference between revisions

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:<math>B = A \times (1+R)+ \sum_{i=1}^n F_i \times (1+R)^ \frac{T - t_i}{T}</math>
 
===Example===
For example, supposeSuppose the value of a portfolio is $100 at the beginning of the first year, and $300 at the end of the second year, and there is an inflow of $50 at the end of the first year/beginning of the second year. (Suppose further that neither year is a leap year, so the two years are of equal length.)
 
To calculate the gain or loss over the two-year period,