Internal Rate of Return Formula | Definition | What is Internal Rate of Return?

Internal Rate of Return Formula

Internal Rate of Return Formula | Definition


Internal Rate of Return.

(1) The rate of discount which makes the net present value of an investment equal to zero. Analogous to "yield to maturity" on a bond.

(2) A dollar-weighted rate of return. The interest rate that will make the present value of the cash flows from all the subperiods in the evaluation period for a money manager plus the terminal market value of the portfolio equal to the initial market value of the portfolio.


For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

Related to Internal Rate of Return Formula :


Tags: Internal Rate of Return Formula, Internal Rate of Return, What is Internal Rate of Return, Internal Rate Return, IRR Formula, IRR, Rate of Return, What is the Internal Rate of Return

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.