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Money Weighted Return with HP 12C - Printable Version +- HP Forums (https://archived.hpcalc.org/museumforum) +-- Forum: HP Museum Forums (https://archived.hpcalc.org/museumforum/forum-1.html) +--- Forum: Old HP Forum Archives (https://archived.hpcalc.org/museumforum/forum-2.html) +--- Thread: Money Weighted Return with HP 12C (/thread-132055.html) |
Money Weighted Return with HP 12C - David Bag - 02-02-2008 Is there a way to use the HP 12C to calculate a Money Weighted Return with multiple cash flows? Sample Situation: 1st of the Month Account Value = 1,000,000 5th Day of the Month: Addition to Account: $30,000 16th Day of Month: Addition to Account: $20,000 30th Day of Month (end of month): Value of Account = 1,080,000 How do you calculate the Money Weighted Return with the HP12C
1,080,000 = 1,000,000*(1+R))^30 + 30,000*(1+R)^25 + 20,000*(1+R)^14 R = .0009536 So, the monthly return = (1+.0009536)^30 - 1 = 2.90%
Thanks for any help
Re: Money Weighted Return with HP 12C - bill platt - 02-02-2008 Do you have the manual?
That would be the place to start.
Re: Money Weighted Return with HP 12C - JDonley - 02-02-2008 Clear your registers before beginning. Set your calc to begin mode. To do this press blue key and Beg key in -1000000 into CF0. To do this press 1000000 and press CHS (changes sign to minus) Press blue key and then CF0. key in 0 into CFj. To do this press 0 and press blue key and press CFj. key in 4 into Nj. To do this press 4 and press blue key and press Nj (this puts a value of 0 into cash flow 1 through 4). key in -30000 into CFj. To do this press 30000 and press CHS (changes sign to minus) Press blue key and then press CFj key in 0 into CFj. To do this press 0 and press blue key and press CFj. key in 10 into Nj. To do this press 10 and press blue key and press Nj. (this puts a value of 0 into cash flow 6 through 15) key in -20000 into CFj. To do this press 20000 and press CHS (changes sign to minus) Press blue key and then press CFj key in 0 into CFj. To do this press 0 and press blue key and press CFj. key in 13 into Nj. To do this press 13 and press blue key and press Nj. (this puts a value of 0 into cash flow 17 through 29) key in 1080000 into CFj. To do this press 1080000 (do NOT change the sign) Press blue key and CFj. Press gold key and irr. Multiply the answer by either 365 or 360 depending on whether you use a 360 or 365 day year. I don't know if this is what you are looking for. Numerous web sites as well as the 12C owners manual give good explanations. Page 71 through 75 gives a pretty good explanation. Best wishes Don
Re: Money Weighted Return with HP 12C - David Bag - 02-04-2008 perfect... thanks.. i wasn't sure how to let the calculator know when the deposits occured and that it was a 30 day month... though, since I was looking for the monthly performance, I took the resulting IRR .09536 and applied the following: (1+.0009536)^30 = 2.90%
Dave
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