Portfolio return calculation – ignored and misunderstood
Source: Unsplash

Portfolio return calculation – ignored and misunderstood

Why do schools have report cards for students at the end of each term? To assess if the material taught was understood by students.

For stock markets, the relevant report card is portfolio return (along with relevant risk metrics). Yet, most investors (both institutional and individual) in our country, either do not calculate their returns or make calculation mistakes that make the numbers useless.

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