2
votes
Accepted
Money-Weighted Returns calculation clarification
The calculation is bringing all the cash flows to present value to equate them.
For example, start the year with $800 deposited, a further deposit of $150 at the end of Q1, a withdrawal of $300 at the ...
- 9,492
2
votes
Accepted
Calculate Dividends Return from Total & Price returns
Dividends are not really "return" since the price of the index is reduced by the amount of the dividend, but the difference between the total return and the price return as a function of the ...
- 129k
1
vote
Money-Weighted Returns calculation clarification
Money-weighted return is essentailly the IRR, which answers the question "at what constant interest rate could I borrow outflows/invest inflows and end up with the same amount at the end of the ...
- 129k
1
vote
Accepted
How to calculate portfolio performance without tracking each individual transaction
To find the annualised return, given the deposits and valuations, calculate the money-weighted return (mwr) for each span between valuations, then compound them for a time-weighted return. Just ...
- 9,492
1
vote
How do I compute the annual risk-free return?
Assuming overnight percentage for each day is known, express that as an overnight multiplier (so .1% would be a multiplier of 1.001), then take the product of all those multipliers. To get it back ...
- 41.5k
1
vote
What is the difference between Capitalization Rate and Return on Assets?
You are correct that the general formula is the same, but they are used in different contexts. Cap Rate is a term that's more specific to real estate and generally applies to specific properties, or ...
- 129k
1
vote
How to deal with spinoffs when calculating money-weighted rate of return (MWRR) of a stock investment
IRR typically measures cash flows, so I would not do anything with the spinoff except adjust the ending value (last "cash flow") unless you actually sell the shares.
So if you get 500 shares ...
- 129k
1
vote
How to calculate Quartile (or Decile) returns
What are you trying to calculate? If your point is to find out what return you will get on your portfolio, then multiply the percent of your portfolio that each stock represents by the return.
Like, ...
- 22k
Only top scored, non community-wiki answers of a minimum length are eligible