Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (35432)	3/25/1998 12:07:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

Paul Levy - question for you, or anyone: If you have today's Wall Street Journal, please take a look at p. C1. There is an article, How to Sidestep a "Beardstown Blunder' When Calculating Portfolio Performance. Using an arithmetic example, the article attempts to show how portfolio return is computed when you have cash withdrawals and contributions. I think the journalist botched the example. She assumes the account had a net cash inflow of $6000 during the period. This makes no sense, although the phrase "net cash inflow" is used repeatedly. The calculations do make sense if you assume a net cash outflow of $6000. Do you agree?