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Re: Portfolio Overlay Graph vs. ROI Yield

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Posted by Mark on July 10, 1999 at 10:05:45:

In Reply to: Portfolio Overlay Graph vs. ROI Yield posted by Michael K. Dawson on July 10, 1999 at 09:09:37:

: If I use the Portfolio Overlay Graph and set the initial value to one and subtract 1 from the final result and multiply that number by 100 -- I get a number that is pretty close to the ROI yield. I that a coincidence or are they mathematical similiar. Once again I am trying to find a way to plot ROI yield vs. time.

: EX.

: Port. Overlay Final Value : (2.52 -1) * 100 = 152%
: ROI Yield = 151%

Michael,
This is mostly coincidence. If you had the time period of the graph
set to one year, and you had no investments during the year, then
these would be similar. The ROI yield calculations take into account
all your transactions, and at what value they happened. The ROI numbers
are also annualized. We have been considering a ROI versus time plot.
I suspect this would be a VERY slowly drawing graph though, as calculating
the ROI at each point is a compute intensive operation.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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