by admin | Oct 4, 2013 | Investment Performance Guy, News
I didn’t anticipate a third posting on this topic, but I received an interesting note from a reader that I wanted to share and comment on:I disagree with your thoughts on using “arithmetic relative” when considering material differences in portfolio...
by admin | Oct 3, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM Principles, estimated time-weighted return, internal rate of return, IRR, Modified Dietz, performance measurement, return measurement, true time-weighted return, TSG
In my last post, I covered a “fast” way to solve multiple choice internal rate of return exercises. In today’s post, I look at a second quick method.Recall the details from the last post:Account market value on 3/31 is $56.3 millionAccount...
by admin | Oct 3, 2013 | Investment Performance Guy, News
When comparing geometric and arithmetic attribution, the following are often cited as advantages of the former:it’s compoundable (meaning, that it links attribution effects over time without creating temporal residuals)it’s convertible (that is, when we...
by admin | Oct 2, 2013 | Investment Performance Guy, News
I think my friend Carl Bacon will be proud of me for this post (no, I haven’t been completely won over; I just see some merit in this limited case!). Talk is cheap: show me the numbers!The subject of materiality came up during this week’s monthly...
by admin | Oct 1, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM Principles, internal rate of return, IRR, performance measurement, private equity, rate of return, real estate, return measurement, SI-IRR, TSG
I have covered the steps to calculating internal rate of return in a few different posts on the blog, including here, here and here. I have also covered the steps to use the cash flow worksheets of the TI BA II Plus and the HP 12 C. You may have read the...