标题: return on margin with commissions [打印本页] 作者: simeezee 时间: 2011-7-11 18:12 标题: return on margin with commissions
What am I missing here? Re: calculating return when buying on margin...
V5 p.29 shows count sale commission in numerator and purchase commission in denominator but EOC answer shows count both in numerator and purchase in denominator
like this...
(both (purchase and sale) commissions subtracted in numerator/purchase commission added to cost in denominator)
isn't this double counting?
can't find anything in errata...can anyone clarify this for me please?作者: dcfox83 时间: 2011-7-11 18:12
No, that is right
Value of Portfolio at End - Value of Portfolio Beginning + Dividends or Other Cash Flow
-----------------------------------------------------------------------------------------------------
Value of Portfolio Beginning - Debit Balance
It's fairly simple, you're taking your gains and dividing it by what you actually put in, not the value of the starting portfolio
Value of Portfolio Beginning is actually what you put in + debit balance from margin.