Modified Dietz Method
The Modified Dietz Method offers a reliable means of calculating an investor's rate of return by excluding external factors that can skew performance measurements.
Return calculation terms for ROI, time-weighted return, money-weighted return, and Dietz methods.
Return Calculation Methods terms measure portfolio return, attribution, benchmark-relative results, tracking error, and risk-adjusted performance.
Use this branch when the question depends on how performance was calculated, attributed, benchmarked, or adjusted for risk.
| Term | Use it for |
|---|---|
| Modified Dietz Method | Return calculation, attribution, benchmark, capture ratio, tracking error, alpha, Sharpe, Sortino, Treynor, or risk-adjusted performance terms. |
| Money-Weighted Rate of Return | Return calculation, attribution, benchmark, capture ratio, tracking error, alpha, Sharpe, Sortino, Treynor, or risk-adjusted performance terms. |
| Rate of Return | Return calculation, attribution, benchmark, capture ratio, tracking error, alpha, Sharpe, Sortino, Treynor, or risk-adjusted performance terms. |
| Return on Investment | Return calculation, attribution, benchmark, capture ratio, tracking error, alpha, Sharpe, Sortino, Treynor, or risk-adjusted performance terms. |
| Time-Weighted Rate of Return (TWR) | Return calculation, attribution, benchmark, capture ratio, tracking error, alpha, Sharpe, Sortino, Treynor, or risk-adjusted performance terms. |
Check the return formula, cash-flow timing, benchmark, fee treatment, reference rate or hurdle rate input, volatility period, attribution model, currency, and whether performance is gross, net, historical, or hypothetical.
This page is educational and does not recommend a specific portfolio, security, fund, tax treatment, or account choice.
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The Modified Dietz Method offers a reliable means of calculating an investor's rate of return by excluding external factors that can skew performance measurements.
Money-weighted rate of return measures portfolio performance including the timing and size of investor cash flows.
Rate of return measures an investment's gain or loss relative to the amount invested over a period.
Return on Investment (ROI) is a key performance indicator used to evaluate the profitability of an investment.
Time-weighted rate of return isolates manager performance by reducing the distortion caused by external cash-flow timing.