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Finance 20 Online
OpenStudy (anonymous):

Dear Aswath, how to calculate a portfolio yeld, if during the period I have cash inflows and outflows from the portfolio.

OpenStudy (anonymous):

Use your net cash flow.

OpenStudy (anonymous):

Is it right solving the equation PV of Inflows=PV of Outflows to find the profitibility of portfolio (r)?

OpenStudy (anonymous):

dude use weighted average method to find the overall return of the portfolio. like if the portfolio consist of n stocks then, R(p)=\[\sum_{i}^{n}=\] (Wi*Ri) where R(p)=return of portfolio wi=weight of ith stock ri=return of ith stock

OpenStudy (anonymous):

\[R(p)=\sum_{i}^{n} (Ri \times Wi)\]

OpenStudy (anonymous):

You're right, but during the period I have cash inflows and outflows from the portfolio.The problem is in adjustments of portfolio value with earnings generated by net cash flows.I preffer Money-weighted rate of return...

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