Questions tagged [rate-of-return]

For questions relating to various measures of the rate of return on an investment, e.g. Internal Rate of Return, Financial Management Rate of Return, etc. Note that questions about these terms that don't apply to personal finance or actual problems you face, e.g. homework questions, are probably off-topic.

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How is the annual ROI calculated in Peer-to-Peer Investing?

I am currently looking through the data file that is provided for export by the lending club, and I am a little confused on how you would go about calculating the ROI for an investment. Just as an ...
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126 views

Investing in DHA property in Queensland

I was interested in investing in DHA (Defence Housing Australia) properties in Queensland. Does anyone who may have any DHA investment properties within Queensland know how these properties have ...
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87 views

How to handle annualizing returns over short time interval leading to huge annualized return?

When calculating the annual return of an investment (as (1 + return in %)^(365/days)-1) over a very short time period - say 2 days - my annual return explodes due to the exponential term, which I ...
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92 views

Calculating the Nominal Rate of Return of a dividend paying stock

How is the nominal rate of return for a dividend paying stock calculated. I understand that nominal return is calculated using the formula: (Current Market Value - Original Purchase Price) / Original ...
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1answer
68 views

Is it good to invest in mutual fund during the down time in market?

Say there is a mutual fund and its annual return in the past 3 years i.e. 2017, 2018, 2019 were -10%, +20%, and -10% respectively. A and B invest $100 in this fund at different time points. A ...
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Intuition behind calculating equity return when P/E ratio changes

In book "A Random Walk Down Wall Street" I came across the calculation of long-term equity return which was long-run equity return = Initial dividend yield + growth rate Where the growth rate, as ...
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37 views

How to calculate portfolio return and compare it with benchmark?

I want to ask how to calculate return on my portfolio and how can I compare it with benchmark index I invested 34500 on 19 dec 2019. Then I added further 25000 on 19 march 2020 out of 25000 I used ...
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30 views

How to calculate total annual return of ZCN ETF using Yahoo Finance?

The ETF that I'm looking at in particular is ZCN. According to Yahoo Finance, the total annual return for this ETF in 2010 was 13.63%. I'm trying to arrive at this number using the historical prices,...
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55 views

How to calculate stock return

Is there a formula to calculate compound return of a given stock, taking into account dividend and reinvestment? For example, a stock which returns 5% yearly plus a 3% annual dividend (paid every ...
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31 views

Calculating return - mix of ROI and TWR

I've got a portfolio with a mix of buy and total sell and some with a mix of buy and partial sell. For the buy and total sell, a simple ROI calculation will work BUT given there are also a mix of buy ...
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56 views

Options trade - statistically expected return calculation?

I also asked this question here, for it to get more visibility. I am calculating expected return for composite option strategies based on event probabilities provided by the broker. For example, ...
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587 views

How to Calculate Annual Return of A Fund When Contribution is Irregular?

I am struggling to calculate the annual return rate for this investment. Initial Investment on 20-May-2010 $2500 Regular contribution of $250 from 12-July-2010 to 10-10-2013. Total units ...
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251 views

How are the sub-periods derrived in TWRR Daily Valuation?

I've been looking at the TWRR Daily Valuation method and I'm trying to understand how to break the total performance period into sub-periods when there are irregular cash flows. As the article ...