Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part I

Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part I

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...
Performance with Leverage:  Part II

Performance with Leverage: Part II

Yesterday, I covered return calculation for a portfolio with leverage.  To review, the background information is:The investor wants to acquire a 500 million euro property but only has 400 million in cashThe investor borrows 100 million euro in order to acquire...
Performance with Leverage, Part I

Performance with Leverage, Part I

Leverage can be a confusing topic, so I figured it is worth covering in a few blog posts.  In this first post, we’ll deal with return calculations for portfolios that employ leverage.Leverage is the use of borrowing, typically with an intent to amplify...

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