## anonymous 5 years ago Dear Aswath, how to calculate a portfolio yeld, if during the period I have cash inflows and outflows from the portfolio.

1. anonymous

2. anonymous

Is it right solving the equation PV of Inflows=PV of Outflows to find the profitibility of portfolio (r)?

3. anonymous

dude use weighted average method to find the overall return of the portfolio. like if the portfolio consist of n stocks then, R(p)=$\sum_{i}^{n}=$ (Wi*Ri) where R(p)=return of portfolio wi=weight of ith stock ri=return of ith stock

4. anonymous

$R(p)=\sum_{i}^{n} (Ri \times Wi)$

5. anonymous

You're right, but during the period I have cash inflows and outflows from the portfolio.The problem is in adjustments of portfolio value with earnings generated by net cash flows.I preffer Money-weighted rate of return...