How to calculate your portfolio's return rate
"What's the return on your investments?"
A simple question that isn't always easy to answer (at least correctly).
Measuring and tracking the return of your investments is one thing you should always do to make good investment decisions. Still, many investors, portfolio trackers and even brokers (I won't point fingers) calculate it incorrectly.
In this post, I will go step by step through simple examples to show you why some commonly used metrics don't work and which ones to use instead.