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Re: very high numbers for yield[ Message Board ] [ Archives ] [ Search ] Posted by jeffrey on August 28, 2006 at 11:42:41: In Reply to: Re: very high numbers for yield posted by Mark on August 28, 2006 at 00:12:46: : : on stock A, the negative amount was smaller than the 6 decimal places? : Yes. This can happen as floating point numbers are stored with a finite precision. Fund Manager is supposed to ignore anything that is smaller than past 6 decimal places. : : on stock B: FM figured the return as if the two week 35% gain was happening for the entire year? : Yes, that is one way to look at it. You can think of it like this: If you had stayed invested in that investment for the whole year, and for the whole year you performed as well as you did when you were actually invested in it, you would have earned that high yield. : Thanks, re: stock b: doesn't including an investment held for two weeks, as if it was held for the whole year skew the portfolio return figure? i am beginning to see that calculating "porfolio return" may be much more complicated than i originally thought. i originally assumed that i was simply looking for a portfolio performance number based, eg, on amount in portfolio at beginning of period, compared to value of stocks and cash at end of period, but somehow not including cash added (or removed?) along the way. in other words, how well was i doing compared to just leaving all money in a mutual fund. but, adding cash, taking out cash, investments that are only held for two weeks, etc, seem to hopelessly complicate getting a meaningful number. perhaps there is no way to reliably compare individual investments strategy with simply leaving a fixed amount in one investment for the whole period?
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