Economics, Econometrics and Finance
4 years ago

New method AIRR revolutionizes investment performance analysis for better returns!

RePEc: Research Papers in Economics
The AIRR Approach for Investment Performance Measurement
Carlo Alberto Magni

Paper Summary

Related papers

Business, Management and Accounting
4 years ago

New investment metrics revolutionize performance measurement for managers and investors!

Value-based Management
Real Options
Asset Pricing
Economics, Econometrics and Finance
4 years ago

New model revolutionizes rate of return calculations, leaving old methods behind.

Real Options
Monetary Models
Macroeconomic Analysis
1 view
Economics, Econometrics and Finance
4 years ago

New model revolutionizes investment decisions, maximizing economic profitability.

Real Options
Value-based Management
Monetary Models
2 views

A new method called Average Internal Rate of Return (AIRR) has been developed for analyzing investment performance. This approach uses weighted averages of holding period rates based on market values to assess both fund and manager performance. The Internal Rate of Return (IRR) is a specific case of AIRR, which considers automatically implied invested capital unrelated to market values. The study also explores the relationship between AIRR and the Time Weighted Rate of Return (TWRR).