Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Yahoo folks, Why are your Annualized Returns wrong?

Pls see the enclosed pic.

Evidently, the annualized returns (gains) in the portfolios are wrong.

The spreadsheet in yellow shows the correct calculation, based on the formula: Ra = (Pc/Pt)^(1/H) -1

Ra = Returns annualized

Pc = Price, current

Pt = Price, traded

H = Holding period, in years

Can you please answer this question? Thank You!

Attachment image

2 Answers

Relevance
  • 7 years ago

    >> I can't replicate right now.

    Sorry, but I must dissent. This problem is persistent and not intermittent. If you create the portfolio like the one in the picture, you will see the wrong numbers as I documented.

    FEW HOURS LATER...

    I found the page that describes how Finance.Yahoo calculates the annualized returns. It's here:

    https://help.yahoo.com/kb/SLN22582.html

    BUT... that method to calculate the annualized returns is just idiotic and invented/tossed by someone incompetent. The proper method is the formula I described here above.

  • Anonymous
    7 years ago

    Hi there,

    We're going to need to further investigate, as I can't replicate right now. Need to see if this is intermittent specific to your portfolio. If you are still experiencing issues, please contact our Finance Customer Care team at:

    https://io.help.yahoo.com/contact/index?page=conta...

    Here, you'll see a few categories to choose from. Once you go through the steps, you'll see an option to send us an 'Email'. Fill out the email form and 'Send'.

    - Oscar

Still have questions? Get your answers by asking now.