Fractal Landscapes in internal rates of return

[Doug]

Hi all,

When reading about the Mandelbrot function I realised that the
calculation we do in finance to solve for the internal rates of return
of a series of timed cashflows was also an interative function.

Sure, enough, when I extended the normal IRR calculation to include
complex numbers and plotted the solutions on the Argand plane,
intricate fractal landscapes emerged that repeated at microscopic
levels.

I can't find anywhere to 'publish' this and am getting too old to
worry about taking credit, so have a look, enjoy, and if you want to
pass it on I'd appreciate being referred to!

http://www.geocities.com/douglaswilliamsmith/Fractals_and_Graphics/Fractal_plots_of_IRR_solutions.htm


= DS


PS this piece (and the paper relating to it) was first published and
shown at the charity art show held by Altius Associates in London,
England on 10 September 2008 this piece (and the paper relating to it)
was first published and shown at the charity art show held by Altius
Associates in London, England on 10 September 2008 (http://
www.altiusartexhibition.com/art_2008/d_smith.html)


PPS slightly more vivid plots are available in bmp format (too big for
web-browsing and only slighly more detail)