but the most commonly used measures include Compound Annual Growth Rate (CAGR), Internal Rate of Return (IRR) and Extended Internal Rate of Return (XIRR). Let us decode what is XIRR in Mutual
Why is Compound annual growth rate (CAGR) a preferred measure of return in investment? Explain the difference between real interest rates and nominal interest rates. How is XIRR (internal rate of return for irregular cash flows) calculated?
the answer depends on the type of investment or project being evaluated. generally speaking, cagr (compound annual growth rate) is better suited for investments with a consistent annual cash flow stream, such as those that yield a steady annual return over time. the irr evaluates more complex ...