calculation for annual rate of return

Brooke Rollins on

Our club "going for Baruch" has a -34.8% return for General
electric stock.
When I divide the the cost basis by the market value, I
get 56%. I must be doing something wrong. Can you help?

iras1 on

The return shown in the bivio report is the annualized rate of return for the period you've owned the stock, taking into account any interim purchases, sales or reinvested dividends. It isn't a simple ratio of cost basis to market value.

Ira Smilovitz

Join me at Invest Ed 2010

Investor Education at Its Best(TM)
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 09/09/09 16:55:57 Eastern Daylight Time, rbrooke001@bivio.com writes:

Our club "going for Baruch" has a -34.8% return for General
electric stock.
When I divide the the cost basis by the market value, I
get 56%. I must be doing something wrong. Can you help?

Mail