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A better way to analyse my returns.
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That may be theoretically true, but with realistic figures for investment (not, say, bitcoin gambling), how often can there be any doubt as to which result is right?ffacoffipawb wrote: »Multiple buys and sells can have multiple solutions for the internal rate of return.
Potentially for every change of cashflow sign, there is another XIRR solution.
EDIT: See example https://www.sumproduct.com/thought/irreverent-irr
Consider those figures: it's saying that after 1 year, $5,000 had turned into more than $55,000, because you could take that out; but then you put in another $10,000, then $60,000, and your balance ends up as - nothing. That would be catastrophic even for bitcoin; it's more like an afternoon at the races. A 'rate of return' is meaningless in that case - the fluctuations have been wild.0
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