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joeu2004 joeu2004 is offline
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Default Calculating quarterly investment returns---XIRR or anotherfunction??

Errata....

On Jan 7, 8:38*am, I wrote:
On Jan 7, 3:56*am, "Carl LaFong" wrote:
=((1+XIRR(B7:B14,A7:A14,0))^((A14-A7)/365)-1)*100

[....]
In any case, dividing by 365 would seem to yield a __daily__ rate, not
a quarterly rate.


Oops! If A7 is the ending date of the previous quarter and A14 is the
ending date of the current quarter, "^(A14-A7)/365" should convert the
XIRR rate to a (nearly) quarterly rate. I would use "^(365/4)"
instead in order to normalize quarters.

Note: Normalize your quarterly rates does not get us any closer to
12011. So there is something fundamentally wrong with the way that
you are using XIRR in this application. No matter. As I said, using
XIRR here is overkill. Fergetaboutit!