Modified Dietz Method
A method of evaluating a portfolio's return based upon a time weighted analysis.
Investopedia Commentary
The Modified Dietz Method is more accurate way to measure the return on your portfolio than a simple geometric return method. This is because the Modified Dietz Method identifies and accounts for the timing of all random cash flows while a simple geometric return does not.
See also: Jensen's Measure, Portfolio, Return, Sharpe Ratio, Sortino Ratio, Time-Weighted Rate Of Return