Modified Dietz Method

A method of evaluating a portfolio's return based upon a time weighted analysis.


The Modified Dietz Method is more accurate way to measure the return on your portfolio than a simple geometric return method. This is because the Modified Dietz Method identifies and accounts for the timing of all random cash flows while a simple geometric return does not.



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Related Terms

Jensen's Measure

Portfolio

Return

Sharpe Ratio

Sortino Ratio

Time-Weighted Rate Of Return

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