Hello everyone, i just need to check if the method i chose was correct or not when it comes to calculate a compound return of a portfolio of stocks.
I have a portfolio that consist of Apple and Tesla, and let's say I add 1 Apple's share on 18/05/2022 at a price of $140.82
How should I compute the portfolio's return?
Based on previous returns:
17/05/2022
TSLA --- $761,61 --- %5,14
AAPL --- $149,24 --- %2,54
Total Value Portfolio and return = $910,85 --- %4,71
% Portfolio acumulated since purchase --- %-26,21
on 18/05/2022 when I add an Apple share at $140,82
TSLA --- $709.81 --- %-6,80
AAPL --- $281.64 --- %-5,64
Total Value Portfolio and return = $991,45 --- %-6,61
% Portfolio acumulated since purchase --- %-31,09
What I did was:
Apple value ---------------> $149,24 * ( 1 + %-5,64) = $140,82 + $140,82(new share) = $281,64
Portfolio value ------------> $281,64 + $709,81 = $991,45
% Portfolio acumulated --> ( $281,64 - $140,82 ) + $709,81 = $850,63 ------ > ( $850,63 / $910,85 ) - 1 = %-31,09
It's that correct? Thank You!
I have a portfolio that consist of Apple and Tesla, and let's say I add 1 Apple's share on 18/05/2022 at a price of $140.82
How should I compute the portfolio's return?
Based on previous returns:
17/05/2022
TSLA --- $761,61 --- %5,14
AAPL --- $149,24 --- %2,54
Total Value Portfolio and return = $910,85 --- %4,71
% Portfolio acumulated since purchase --- %-26,21
on 18/05/2022 when I add an Apple share at $140,82
TSLA --- $709.81 --- %-6,80
AAPL --- $281.64 --- %-5,64
Total Value Portfolio and return = $991,45 --- %-6,61
% Portfolio acumulated since purchase --- %-31,09
What I did was:
Apple value ---------------> $149,24 * ( 1 + %-5,64) = $140,82 + $140,82(new share) = $281,64
Portfolio value ------------> $281,64 + $709,81 = $991,45
% Portfolio acumulated --> ( $281,64 - $140,82 ) + $709,81 = $850,63 ------ > ( $850,63 / $910,85 ) - 1 = %-31,09
It's that correct? Thank You!
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