On 'Introducing Excess Return on Time-Scaled Contributions' : A Clarification

In Jiang's (2017, JAI, 9 (4): 77–91), the author proposes an interesting metric, which is a special case of Average Internal Rate of Return (AIRR), introduced in Magni (2010). In the paper, the author also deals with Economic AIRR (EAIRR) (Magni 2013) and ICM-based AROI (Magni 2011, Altshuler and Magni 2015). Jiang warns the reader against potential violations of value additivity of EAIRR and ICM-based AROI. This paper shows that there is no potential violation of value additivity in either case if the correct procedure for computing EAIRR and ICM-based AROI is followed