Originally Posted by ;
well I only signed on for my work to check out the formula to the PRR
This is:
PRR = gain/(begbal weighted transactions)
weighted transaction = (deposit amt * (times of deposit))/total times **assuming no withdrawals in this situation
Thus, in the example:
Assuming you made $300 and $500 for a total of $800 profit. Your beginning balance was $1000. You deposit $1000 on 6/30/2007. The close of the period is 12/31/2007. So the weighted transaction for the deposit (1000 * (184)/364)) = 505.49
**Notice, excel said 364 was difference between 1/1/2007 and 12/31/2007 and 184 for 6/30/2007 to 12/31/2007 so that is what I used
PRR = 800/(1000 505.49) = 53 percent on an annualized basis.
I'm still not sure that this is accurate for what we do. I will ask the account rep. He double checked my code together with his own formula.