Tagged Questions
2
votes
2answers
37 views
What is the theory behind Rick Van Ness's risk calculation in the video about diversification?
In the video, Rick Van Ness states the following scenario:
Stock A has a 7% return with +/- 1% risk
Stock B has a 3.5% return with +/- 0.5% risk
Stock A and B are perfectly negatively correlated.
...
9
votes
2answers
126 views
Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?
When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR).
I've got a ...
3
votes
1answer
713 views
How can I calculate a “running” return using XIRR in a spreadsheet?
I should say that I'm not married to XIRR, I just want to calculate the return on a running basis in a column next to dates, deposits and balances. Here's a screenshot of a simplified spreadsheet in ...
1
vote
6answers
446 views
Help me understand the oddity of percentage gains and losses?
If you start with $100K, and you get a 50% gain, it's $150K. Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
8
votes
2answers
99 views
How do I account for newly added money when computing my rate of return?
I have a simple spreadsheet where I track the balance in my investment account. What should I do to handle new deposits in the account?
For example:
End of Day 1: balance = $100
End of Day 2: ...
4
votes
2answers
233 views
Discussing real estate appreciation: Compound vs. simple interest?
When people say real estate has appreciated 8 % over the past 5 years, do they mean 8 % compounded annually? or simple interest annually?
3
votes
3answers
574 views
How to calculate the rate of return on selling a stock?
How to calculate the rate of return on selling a stock?
