If it was one trade over a period of time, it would be easy. I mean, let's say I deposited $1000, bought a stock for $800, sold it for $1000, so my return on portfolio would be 20% (200/1000).
I'm wondering how I'm supposed to calculate return on a portfolio where there's new deposits and withdrawals in between the period, some gains are realized and some are unrealized and off-course, lots of trading.
I give you a situation for a month and I want you to help me find a return for the month with which I can compare my performance with other months, considering all the factors given below.
Oct 01: Deposit $100,000
Oct 02: Buy stock1 for $12,000
Oct 04: Buy stock2 for $20,000
Oct 07: Buy stock3 for $50,000
Oct 07: Sell stock2 for $27,000
Oct 08: Deposit $50,000
Oct 09: Buy stock4 for $80,000
Oct 11: Sell stock1 for $15,000
Oct 12: Sell stock3 for $48,000
Oct 12: Withdraw $20,000
Oct 16: Buy stock5 for $55,000
Oct 19: Sell stock4 for $95,000
Oct 21: Deposit $50,000
Oct 23: Buy stock6 for $30,000
Oct 25: Sell stock6 for $35,000
Oct 29: Withdraw $20,000
Oct 31: Value of stock5 is $70,000 (includes unrealized gain)
How am I supposed to find a return for the month of October with the example above? Like I said, realized and unrealized gains or losses, deposits, withdrawals, opening and closing balances, and dates... all of them is to be considered.
I googled.... a lot but I couldn't find or come up with a solution. Anyone willing to help?
I'm wondering how I'm supposed to calculate return on a portfolio where there's new deposits and withdrawals in between the period, some gains are realized and some are unrealized and off-course, lots of trading.
I give you a situation for a month and I want you to help me find a return for the month with which I can compare my performance with other months, considering all the factors given below.
Oct 01: Deposit $100,000
Oct 02: Buy stock1 for $12,000
Oct 04: Buy stock2 for $20,000
Oct 07: Buy stock3 for $50,000
Oct 07: Sell stock2 for $27,000
Oct 08: Deposit $50,000
Oct 09: Buy stock4 for $80,000
Oct 11: Sell stock1 for $15,000
Oct 12: Sell stock3 for $48,000
Oct 12: Withdraw $20,000
Oct 16: Buy stock5 for $55,000
Oct 19: Sell stock4 for $95,000
Oct 21: Deposit $50,000
Oct 23: Buy stock6 for $30,000
Oct 25: Sell stock6 for $35,000
Oct 29: Withdraw $20,000
Oct 31: Value of stock5 is $70,000 (includes unrealized gain)
How am I supposed to find a return for the month of October with the example above? Like I said, realized and unrealized gains or losses, deposits, withdrawals, opening and closing balances, and dates... all of them is to be considered.
I googled.... a lot but I couldn't find or come up with a solution. Anyone willing to help?
