Computing quarterly periodic IRR

CFA Level III Portfolio Management
#1

Hi everyone,

Could someone please help me out with the following?

Assuming the following cashflows:

Invested December 31,2015 - $100,000

Invested March 31, 2016 - $200,000

Distributed June 30, 2016 - $10,000

Value as of September 30, 2016 - $295,000

How does one come to a quarterly periodic IRR of 0.7209%?

Thank you

#2

CF0 = 100,000

CF1 = 200,000

CF2 = −10,000

CF3 = −295,000

Compute IRR = 0.7209%

This is a Level I Quant question, right?

#3

Thanks a lot! That slipped my mind. I had used the XIRR function in excel and was wondering why I couldn’t get the figure.

#4

My pleasure.