I'm making a mock portfolio that includes stocks and bonds. I want to calculate the blended return of my portfolio. I know the return rates for the bonds, but how do I integer out the return for stock? I have no hypothesis if the stock will even go up... My stocks include XMSR, MMM, and VZ for example. Where can I find their return rates?
Answers: The easiest instrument to do that is to add percentage change contained by price plus any dividends. Or if you use data from Yahoo from example and want on a daily basis return of any stock, you devide day's adjusted closing price (in yahoo prices are already in tune for dividens and stock-splits) devided pay previous day's closing price minus 1. Then once you total the daily return for respectively stock and bond, you can compute the return of your portfolio as a weighted average of each individual asset return. That is sum of products of an asset return and its immensity in the portfolio (market importance of the asset at the end of the daytime (i.e. number of shares or bonds times closing price) devided by total market appeal of your portfolio)
There is a wide standard ebb and flow when you estimate the return of a common stock.
For the dictation, the average annual gain of a stock is the current yield (from a dividend) + the estimated growth rate of that dividend.
For example, if you have a stock yielding 4% and its dividend be expected to grow at at 9% rate the estimated return of the stock would be 13% per annum.
One way to integer out the expected return on a stock is to use the Capital Asset Pricing Model. You can get the beta from Yahoo finane and the risk free rate. Use the verbs on the ten year treasury bond for the risk free rate. You should be asking if you can trust the estimated return of a stock first
ETrade is pretty good.
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Answers: The easiest instrument to do that is to add percentage change contained by price plus any dividends. Or if you use data from Yahoo from example and want on a daily basis return of any stock, you devide day's adjusted closing price (in yahoo prices are already in tune for dividens and stock-splits) devided pay previous day's closing price minus 1. Then once you total the daily return for respectively stock and bond, you can compute the return of your portfolio as a weighted average of each individual asset return. That is sum of products of an asset return and its immensity in the portfolio (market importance of the asset at the end of the daytime (i.e. number of shares or bonds times closing price) devided by total market appeal of your portfolio)
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There is a wide standard ebb and flow when you estimate the return of a common stock.
For the dictation, the average annual gain of a stock is the current yield (from a dividend) + the estimated growth rate of that dividend.
For example, if you have a stock yielding 4% and its dividend be expected to grow at at 9% rate the estimated return of the stock would be 13% per annum.
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One way to integer out the expected return on a stock is to use the Capital Asset Pricing Model. You can get the beta from Yahoo finane and the risk free rate. Use the verbs on the ten year treasury bond for the risk free rate. You should be asking if you can trust the estimated return of a stock first
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ETrade is pretty good.
Resolved Questions: