The rate of return that is calculated and reported in Portfolio Professional is the solution to the above equation for r when the A's , the t's and the forward amount are all known. This method of measurement is the most useful when comparing investments with varied cashflows and durations. Rate of Return is always annualized. The default frequency is annual but this can be changed using the preferences screen within the application. Lifetime performance is determined from the most recent value and all earlier transactions.
Interval performance is determined from the current value and a previous value.
Only the transactions falling between today's date and the previous date are considered. Volatility and Risk Performance volatility is a measure of the variability of an investment's rate of return. Specifically, it is the standard deviation of the sample set of monthly returns that have been observed for the investment over the interval being considered. It is important to consider how much risk you are being subjected to when you compare investment performance. Volatility calculation allows you to compare your investments in terms of risk as well as performance as shown below.