Re: Seems like an error

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In Reply to: Re: Seems like an error posted by Linda on February 15, 2005 at 18:53:42:

: I don't understand why you must synthesized a portfolio for the "Price + dist" graph. Just use the "real" portfolio and normalize it to start at a value of 100. I would think any user of FM would prefer to use their actual portfolio in both the "Value" and "Price + dist" overlay graphs. Isn't that the objective of these overlay graphs?? To compare the performance of my actual portfolio to the chosen overlay investments.

Hi Linda,

Yes, that is the objective... The reason that a synthesized price is used for
the portfolio is that if you just normalized the value what happens when you
take money out of the portfolio? The "value" goes down, but the share price
of an investment you're comparing against doesn't go down. These graphs
are trying to compare value against value and price against price. It is easy
to get the investment price and the portfolio value, but the other 2 cases
are not immediately available, so a synthesized value/price are used. I'm sure
there are other ways to accomplish this comparison. If there are other ideas
we can consider adding them into a future version.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

Replies:

• Re: Seems like an error Linda 10:44:09 02/18/05 (0)