Re: YEILD CALCULATION

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In Reply to: YEILD CALCULATION posted by MARIOS S on March 20, 2001 at 02:30:46:

: I HAVE A PROBLEM UNDERSTANDING HOW TO SET UP A PORTFOLIO WHICH WILL PRODUCE CORRECT GAIN% CALCULATIONS. I START WITH $1000 CASH. PRESUMABLY I RECORD IT AS A PURCHASE IN MY PRE-SET DEFAULT CASH ACCOUNT. I THEN USE THE $1000 TO BUY A STOCK. THIS STOCK GOES UP 10% IN VALUE. MY GAIN%-I APPEARS CORRECT AS 10%. BUT AT THE PORTFOLIO LEVEL THE GAIN%-I APPEARS AS 5%. I BELIEVE THIS IS BECAUSE THE INITIAL CAPITAL IS TREATED AS A PURCHASE WHEN REALLY IT WAS AN INITIAL CAPITAL CONTRIBUTION. IT SEEMS TO ME THAT ONCE YOU RECORD CAPITAL INFLOWS AS PURCHASES THEN RETURN CALCULATIONS ARE BOUND TO BE WRONG. PLEASE ENLIGHTEN

Hello,
Fund Manager includes all of your open investments in the calculations of
yield, %Gain, etc... If you wish to view your performance, only accounting
for certain investments, (like maybe non-cash) just create another portfolio
with only these investments. Investments can be grouped into as many portfolios
as you'd like.

Thanks,
Mark
--
Mark Beiley

Fund Manager, portfolio management software for Windows 95/98/ME/NT/00

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