Accounts/households with a positive net appreciation but a negative performance return (and vice versa) is counter intuitive but can be surprisingly common.
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The root of the confusion comes from performance return being the result of a time weighted calculation, while net appreciation is a simple difference.
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This occurs most frequently when there are large deposits/withdrawals in an account, or in a household when accounts open at different times.
Why is my account's performance negative but the net appreciation is positive (or vice versa)?
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Written by Joseph Barth
Updated over a week ago