Modified Dietz Method
A method of evaluating a portfolio's return based upon a time weighted analysis. Investopedia Says:
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. Related Terms:
Jensen's Measure
Portfolio
Return
Sharpe Ratio
Sortino Ratio
Time-Weighted Rate Of Return |