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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.

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  1. anonymous
    • 5 years ago
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    Use your net cash flow.

  2. anonymous
    • 5 years ago
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    Is it right solving the equation PV of Inflows=PV of Outflows to find the profitibility of portfolio (r)?

  3. anonymous
    • 5 years ago
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    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
    • 5 years ago
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    \[R(p)=\sum_{i}^{n} (Ri \times Wi)\]

  5. anonymous
    • 5 years ago
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    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...

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