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Re: Yield indicator

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Posted by Mark on January 22, 2001 at 21:15:57:

In Reply to: Re: Yield indicator posted by Ray on January 22, 2001 at 09:17:20:

: : : Hi Mark,

: : : I'm using the latest beta version of FM-Pro and I'm not sure if this is a problem or I'm just misinterpreting what I see. With the yield set to re-invested dividends, if I look at the NAV+DIV graph, the yield listed above the graph matches the yield listed with the trendline, ie. 33.03% and 33.03%. When I change to the Value graph the yield listed above the graph is still 33.03% however, the trendline not indicates 61.47%.

: : : Thanks,
: : : Ray

: : Hi Ray,
: : Trendlines are specific to a particular graph type and investment, so you
: : are looking at two different trendlines on the Value and NAV+DIV graphs. The
: : yields above the graph are for the investment, ending on the ending date of
: : the graph. The yields for a trendline are for that trendline, and don't
: : necessarily have any relationship to the yield of your investment, they are
: : showing the yield for the line as you drew it. If you believe the yield
: : of the trendline to be incorrect you can e-mail us the investment file, and
: : we can take a look.

: : The equation for trendline yield is:

: : End_Value = Start_value * (1 + i)^term

: : where 'term' is the # of years from start to end, and 'i' is the yield.

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: :
: : Fund Manager for Windows 3.1x/95/98/NT
: :
: :

: Hi Mark,

: I realize the yeild for the trendline reflects the yield of the line being drawn. However, I would have thought that if the trendline was drawn from the same start and end points as the graph and the same value as the start and end of the graph, the yield would match the "gph" yield listed above the graph.

: Thanks

: Ray

Hi Ray,
Sometimes this will be true, but not always. For instance, if you have the
yields set to ROI and have some investments during the yield term, this would
cause your yields to be different. The trendline yield is just a simple
yield, for the given slope of the line. ROI yields are affected by
transactions, which trendlines aren't. Also, if you have yields set to
one of the Fund Performance types, and you have distributions, this would
cause these yields to be different than the trendline yield.

Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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