The return is equal to sum of the products of each position’s value and return divided by the beginning portfolio value.
|
Position |
Mkt. Value at
1/1/05($MM) |
Return for 2005(%) |
Position Value × Return ($MM) |
|
A |
1.30 |
–2.0 |
-0.0260 |
|
B |
1.40 |
–4.2 |
-0.0588 |
|
C |
2.20 |
+6.4 |
0.1408 |
|
D |
3.90 |
+2.1 |
0.0819 |
|
E |
1.70 |
–0.8 |
-0.0136 |
|
Total |
10.50 |
|
0.1243 |
|
0.1243 / 10.5($MM) = |
+1.1838% |
