https://bugs.kde.org/show_bug.cgi?id=396301
Jack <ostrof...@users.sourceforge.net> changed:
What |Removed |Added
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Status|REPORTED |NEEDSINFO
Resolution|--- |WAITINGFORINFO
--- Comment #3 from Jack <ostrof...@users.sourceforge.net> ---
I have not yet looked into your examples in detail, but I think you
over-complicate the calculations. Starting and ending balances are irrelevant
to return for a single investment. (It would be the same ROI no matter which
account it took place in.) Take a look at
https://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp.
(I think mutual funds can use the same calculations as stocks and bonds.)
First work through it without any reinvestment transactions, nut I agree that
those transactions can be ignored, since they just mean you are selling more
shares than you purchased. The critical values are total purchase cost and
total sale value. I won't copy/paste the formula from that link, but after you
review it, let us know if you still think KMM is making incorrect calculations.
Annualized returns can be even more complicated if there is not a single
purchase and single sale.
Separately, your example shows two purchases of 8 and 4, a dividend
reinvestment of 1.5 shares, but a sale of only 10 shares. What happened to the
other 3.5 shares?
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