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Internal Rate of Return (IRR)
A statistical indicator providing a representation of the value of the securities, which constitute it. Indexes often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured.
INDEVAL. Mexican Institute for Deposit of Securities.
Indicator. Data which provide information about or predict the overall health of the economy or the financial markets; examples are inflation, interest rates, employment, volume, and insider trading.
Inflation. The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index.
Interest Rate. A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve policies. For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1,000, then the interest rate would be 90/1000 *100% = 9%.
Internal Rate of Return (IRR). The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. Also called dollar-weighted rate of return.
Investment Fund. Firm that invests the pooled funds of retail investors for a fee. By aggregating the funds of a large number of small investors into a specific investments (in line with the objectives of the investors), an investment company gives individual investors access to a wider range of securities than the investors themselves would have been able to access. Also, individual investors are not hampered by high trading costs since the investment company is able to gain economies of scale in operations.