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Analysts need the ability to calculate the annual IRR if the period is greater than the number of days specified for a year (approximately 365).
The Annualize option annualizes the IRR if the number of days in the reporting period is greater than 365. However, if used with the option Calculate Partial Periods, only securities that are held for more than 365 days are annualized.
The basic logic changes the weighting factor in the IRR to:
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