WebCab Portfolio for .NET v5.0 Demo

PerformanceEvaluation.TotalReturn Method 

Evaluates the total realized returns of a portfolio over a given period of time.

public double TotalReturn(
   double disbursement,
   double dividends,
   double marketPriceStart,
   double marketPriceEnd
);

Parameters

disbursement
The cash disbursement during the period. That is, the total amount in the reference currency which is paid out during the period being considered.
dividends
The total amount of dividends paid during the period. That, is the total amount in the reference currency which is paid out during the period being considered.
marketPriceStart
The market price in the reference currency of the portfolio at the start of the period being considered.
marketPriceEnd
The market price in the reference currency of the portfolio at the end of the period being considered.

Return Value

A double equal to the total realized return of a portfolio.

Remarks

Application of the Total Return

It is important when considering the return from an investment asset to consider all sources of cash flows which can result from holding a given asset. In the case of equity these other cash flow could result from company dividends and other disbursements such a special dividends, loan notes and the shares of newly establish entities. Care should also be taken in include further costs such as a rights issues when the stocks holders are required to make payments to the underlying corporation.

Remarks:

  1. The measure of the total return of a portfolio does not take into account the risk of the portfolio.
  2. Note that the total return does not take into account when the cash flow take place during the period under consideration. That is, the cash flow are not discounted is accordance with an interest rate.

See Also

PerformanceEvaluation Class | WebCab.Libraries.Finance.Portfolio Namespace