Re: Cash Contributions

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Posted by Al Baird on September 26, 2007 at 16:03:11:

In Reply to: Re: Cash Contributions posted by Mark on September 26, 2007 at 12:44:19:

: : I am manually creating a portfolio, where I enter the portfolio value at the end of each month. Some months I have contributed cash to the portfolio to buy more stocks. What do I do to calculate the yield, given that new money is being added?

: Hi Al,

: Contributing cash should not throw off your yields. How are you entering your portfolio value at the end of each month?

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

I created a sub-portfolio and manually entered the value at the end of each month. If during one of those months, I added a large amount of cash, it seems like it would appear that the value of the stock shot up by that amount for that month. Is there not a difference between my stocks increasing in value by 10% in one month and my adding 10% more money to my investment?

Al

Replies:

• Re: Cash Contributions Mark 16:42:32 09/26/07 (0)