Markets: A Rigorous Course

M00 · Problem 3 ★★ Check

XIRR with a partial withdrawal

Your cash flows in a fund are: −₹50,000 on 10 Apr 2024, −₹20,000 on 20 Nov 2024, −₹30,000 on 2 Jun 2025, +₹15,000 (a partial redemption) on 15 Dec 2025, and the holding is worth ₹1,02,000 on 30 Oct 2026. (a) Compute the absolute return (total received plus current value, over total invested, minus one). (b) Write the equation that defines the XIRR, with the year fractions, and solve it numerically. (c) Does Proposition 0.2 guarantee that your root is the only one? Explain.

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Commas, ₹, % and 1e-3 notation are accepted.

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