Hi AlphaQuant,
Thanks. I think I need some time to digest the idea behind XIRR. http://www.mathsisfun.com/money/internal...eturn.html
I have another idea come across my mind. Since there are 2 different individual transactions on the same stock. Each transactions yields different return. Does it make sense, if I calculate using
http://en.wikipedia.org/wiki/Rate_of_ret...le_periods
Transaction on 1st January
$2 * 1000 units = $1000 (1 + r0)
r0 = 1
Transaction on 1st March
$2 * 1000 units = $1000 (1 + r1)^(10/12)
r1 = 1.2974
r = (r0 + r1) / 2 = 1.1487
Of course, the final result isn't tally with XIRR's. But, is it something which makes sense to end users?
Thanks. I think I need some time to digest the idea behind XIRR. http://www.mathsisfun.com/money/internal...eturn.html
I have another idea come across my mind. Since there are 2 different individual transactions on the same stock. Each transactions yields different return. Does it make sense, if I calculate using
http://en.wikipedia.org/wiki/Rate_of_ret...le_periods
Transaction on 1st January
$2 * 1000 units = $1000 (1 + r0)
r0 = 1
Transaction on 1st March
$2 * 1000 units = $1000 (1 + r1)^(10/12)
r1 = 1.2974
r = (r0 + r1) / 2 = 1.1487
Of course, the final result isn't tally with XIRR's. But, is it something which makes sense to end users?