Thread: XIRR and IRR
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Jay Petrulis
 
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Hi Dan,

To annualize the 1 period return, you would use geometric linking
rather than arithmetic. Your one period IRR annualized becomes...

(1+IRR)^(periods/yr) - 1

In your case...

(10005/10000)^365 - 1 = 20.01594%

Regards,

Jay Petrulis