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Old 02-06-2004, 03:15 AM
Cal Learner-- MVP
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Default Re: Incorrect return calculation in Money

In microsoft.public.money, Hal C wrote:

- quote -

> I have an unusual investment which money shows as having
> a negative return when in fact it is positive. Take this
> simplified example: 1 Jan 2000 buy 1000 shares [at] $100, on
> 1 Jan 2001 buy another 1000 at $100, and on 1 Jan 2002
> buy a further 1000 [at] $100. On 1 Jul 2002, receive a
> dividend of $150,000. On 1 Jan 2003, the company makes a
> full return of capital of $100 per share or $300,000
> total. As of 1 Jan 2003, after the return of capital, the
> share value is $30 each.
> Money shows the return as ROI all dates minus 20%, annual
> return minus 10.1%. Quicken shows annual return as
> 32.36%, which is correct. What is wrong with Money's
> return algorithm???


It ignores the Return of capital in the analysis. i.e., a bug.

Another return of capital bug is that Money accepts a negative
value, but treats it as a positive return of capital: it reduces the
basis.

  #-1  
Old 02-06-2004, 01:41 AM
Hal C
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Posts: n/a
Default Incorrect return calculation in Money

I have an unusual investment which money shows as having
a negative return when in fact it is positive. Take this
simplified example: 1 Jan 2000 buy 1000 shares [at] $100, on
1 Jan 2001 buy another 1000 at $100, and on 1 Jan 2002
buy a further 1000 [at] $100. On 1 Jul 2002, receive a
dividend of $150,000. On 1 Jan 2003, the company makes a
full return of capital of $100 per share or $300,000
total. As of 1 Jan 2003, after the return of capital, the
share value is $30 each.

Money shows the return as ROI all dates minus 20%, annual
return minus 10.1%. Quicken shows annual return as
32.36%, which is correct. What is wrong with Money's
return algorithm???
 

Tags
calculation, incorrect, money, return
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