Re: Reports/ ROI/ Interpolation

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In Reply to: Re: Reports/ ROI/ Interpolation posted by Dale E. Adams on September 24, 2003 at 11:26:21:

Hi Dale,

If you're looking to compare the performance of the intrinsic stock/fund
then you would probably want to use one of the "Fund Performance" yields
instead of the ROI yield. The Fund Performance yields only look at the
share price / distributions, when calculating yields, so it doesn't matter
whether you owned it or not.

Thanks,
Mark
--
Mark Beiley

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

: :

: : For the ROI yields, including a time period where you don't own any shares

: : doesn't change the result. It won't have a positive or negative impact

: : on your ROI yield.

:
: : Maybe you're looking somewhere else that I'm not thinking of? Can you let

: : me know if this doesn't answer your question, which I suspect it didn't...

:
: : Thanks,

: : Mark

: : --

: Hi Mark,

:
: I now think this is more my problem. Also because it exists as a result of a difference in perspectives and not an error, resolving it could take large amounts of time.

: But hopefully I can illustrate my point. (Or someone can straighten me out.) This is not a request for a fix.

: When asked to determine a yield for a Term longer than I've owned the stock, FM calculates the yield for the period of ownership, and then presents this for the Term.

: This is not incorrect; that is in fact all I've gotten in the period in question. However, it is probably not the yield I would have gotten had I actually owned the stock for the entire Term.
:
: Comparing this yield to that of a stock held for the entire Term will not be meaningful, but unless I check purchase the dates, I won't know.

: I am not saying the shorter-held stock is at a disadvantage; its yield could of course be higher.

: From the view of "what you did with your money", that's reality. But it is less useful to me as a tool to quickly compare stocks.

:
: Example:

: For a stock I've owned for 21 months, FM gives a 20-month yield of 12.12 %, and a 42-month yield of 12.12%. It does so without as much as an asterisk, as it has good price data for the Term. If I had actually owned the stock for 42 months, the yield almost certainly would not be 12.12%.

:
: Observation:

: I have 43 months of price data for this stock. I change Preferences to ask for a 45 month yield instead of 42. Now I get "N.A." for the 45 month Term because FM won't calculate a yield without price data. But it doesn't need that data now any more than it needed it before, because it would only calculate back 21 months.

: Perhaps unless both price data and ownership exist for the term requested, FM could say "N.A.".

: Meanwhile I will edit my price files to match purchase dates.

: Thanks.

:
: Dale

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