by admin | Apr 8, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM Principles, internal rate of return, IRR, performance measurement, rate of return calculations
A CIPM Principles candidate sent an email asking how to calculate the internal rate of return in the exercise shown in Exercise 36 in the CIPM Principles Curriculum (on page 234). In this example, the following information is given:Account market value on 1/1/10...
by admin | Apr 8, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM Principles, internal rate of return, IRR, IRR calculation, performance measurement
A CIPM Principles candidate sent an email asking how to calculate the internal rate of return in the exercise shown in Example 26 in the CIPM Principles Curriculum (on page 198). In this example, the following information is given:Account market value on 3/31 is...
by admin | Oct 6, 2011 | aggregate method, internal rate of return, IRR
Before you think “oh, here he goes again” please give me a second to explain. Okay, yes, it’s true: I’ve been beating this to death (and will continue to, but not right now).I was sent the following question from a client:”How do you...
by admin | Sep 19, 2011 | internal rate of return, IRR, risk, time-weighting
Someone recently asked me what risk statistics should be used with the internal rate of return (IRR), (which, as any reader of this blog knows, is my preferred return measure). Sadly, I didn’t have an immediate reply.The plethora of risk statistics that are...
by admin | Jun 29, 2011 | IRR, money-weighting, time-weighting
“Men have had recourse to many calculations”Ecclesiastes 7: 29What’s the interpretation of this line? Sadly, my bible doesn’t reference which return formulas the writer was referring to, but one with an open mind can conjecture that it’s...
by admin | Apr 15, 2011 | CIPM, CIPM expert, HP 12C, internal rate of return, IRR, money-weighted return, MWR, TI BA II Plus
The following steps may be used to calculate internal rate of return using one of the financial calculators (HP 12C and TI BA II Plus):1. Identify all external cash flows, including beginning and ending market values, and arrange them in chronological order.2. Arrange...
