compound rate of return

  • Thread starter Thread starter Bob Terrell
  • Start date Start date
B

Bob Terrell

How do I get a % for compound rate of return for a single
stock investment? Facts: date purchased, cost paid,
current date, curent value.

How do I do this for say 40 investments? An overall
compound rate of return OVERALL for all of 40 investments?
Seems like there should be a way to get a single % for
this portfolio? What rate of performance was achieved for
the 40 dates of investments if the total value on a later
date is such and such?

Any ideas are welcome. Seems like Excel should do this.

Please email me at (e-mail address removed)

Bob
 
With no dividends

((End Value + Dividends Paid Out)/ (Start Value))^(1/n) -1

where n = 365/(end date-start date) and Dividends Paid Out represent
dividend payments that were not reinvested in the portfolio.

will be the average annual compounded rate of return for a single security
or the entire portfolio.

HTH

PC
 
For an entire portfolio, use the XIRR function. Just give XIRR your cash
flows (dividend reinvestments, buys and sells don't affect portfolio return)
and it will calculate your overall return.
 
Back
Top