The Ir R Is the Rate of Return on the Equity Capital

The rate of return on the equity capital tand here's a shocker for you, if you make a bunch of money without calling any equity capital, the i r r is infinite. And what this shows is that you can have a very high i r r, but ot much of er dollar return. The really important substance of u candied i r r was where i show that not only is i r r an imperfect measure of how well your investment did, how well the fund did. Sometimes you get a high moik and a low i r r. Which is better? Can't say. So no one metric tells the whole story.