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Old 01-02-2006, 04:56 PM
Cal Learner-- MVP
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Default Re: Annual Returns Calculation

In microsoft.public.money, Dick Watson wrote:

- quote -

> Because everybody else has the luxury of assuming the return on $1 invested
> all year and Money has to deal with Money flow into and out of the
> investment? If you'd had $10,000 invested in ABC at the beginning of the
> year, sold it for $10,500 at the end of June and Money is reporting
> something like a 10% annual rate of return and now everybody else is
> reporting that ABC is up 100% on the year--your $10k would be worth $20k if
> only you'd held on--would Money reporting your rate of return as 100% make
> you feel better about it?
> "AnotherBogie" <AnotherBogie[at]discussions.microsoft.com> wrote in message
> news:8C9AACB2-50C0-4F6F-B345-057FB3D6EE4B[at]microsoft.com...
> > Why does money use IRR when nothing else uses this. Morningstar, CNN Money
> > etc etc etc? The returns shown on my portfolio in money do not equal
> > anything
> > else.


If you don't find that number useful, use
ChangePortfolioView-> CustomizeCurrentView-> PortfolioColumns to
remove the "Ann. Ret." column. Instead configure in the various TR
columns.

I find that number useful.
 
Old 01-02-2006, 04:49 PM
Dick Watson
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Posts: n/a
Default Re: Annual Returns Calculation

Because everybody else has the luxury of assuming the return on $1 invested
all year and Money has to deal with Money flow into and out of the
investment? If you'd had $10,000 invested in ABC at the beginning of the
year, sold it for $10,500 at the end of June and Money is reporting
something like a 10% annual rate of return and now everybody else is
reporting that ABC is up 100% on the year--your $10k would be worth $20k if
only you'd held on--would Money reporting your rate of return as 100% make
you feel better about it?

"AnotherBogie" <AnotherBogie[at]discussions.microsoft.com> wrote in message
news:8C9AACB2-50C0-4F6F-B345-057FB3D6EE4B[at]microsoft.com...
- quote -

> Why does money use IRR when nothing else uses this. Morningstar, CNN Money
> etc etc etc? The returns shown on my portfolio in money do not equal
> anything
> else.



  #-1  
Old 01-02-2006, 04:21 PM
AnotherBogie
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Posts: n/a
Default Annual Returns Calculation

Money states the following:
An annualized percentage return is the annual profit on an investment as a
percentage of the amount invested. Money uses the Internal Rate of Return
(IRR) formula to calculate the annualized percentage return on each
investment.

Why does money use IRR when nothing else uses this. Morningstar, CNN Money
etc etc etc? The returns shown on my portfolio in money do not equal anything
else.
 

Tags
annual, calculation, returns
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