CFA CFA Level 3 What the heck is the Modified Dietz Method?

What the heck is the Modified Dietz Method?

  • This topic has 3 replies, 3 voices, and was last updated Aug-21 by zenarcher.
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      Hey L3 candidates, I’ve been doing practice problems and practice tests and saw a question about the Modified Dietz Method which is completely foreign to me. I read the CFAI 2020 materials cover to cover and I generally know if I’ve seen a term and just can’t remember it or if I’ve straight up never seen it before. I figured this was part of the old curriculum since I was doing practice tests from previous years, then I just saw a question about it on the CFA ecosystem q-bank and it freaked me out. I searched through all of my materials and can’t find where this is covered. Can anybody give me a tip as to what book/reading/section I can find it? Thanks.

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      Apologies, a coworker pointed out that this can be found in Reading 6: Overview of the Global Investment Performance Standards. Mods feel free to delete.

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      Hey fellow lefty – it is in the L3 curriculum, volume 1.

      Hidden under GIPS (Reading 6), section 3.3 under “3.3. Calculation Methodology: Time-Weighted Total Return”.

      Don’t panic, there is still time!

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      Just think of it this way, it takes into account the TVM of cash flows as they come and go within a period.

      Zee Tan voted up
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