How to determine a portfolio's rate of return when it has experienced cash flows. Monthly Return Example: Example: \begin{tabular}{|l|rr|r|rr|} \hline BMV & $100.00 & & $ & 100.00 \\ \hline Cash flow & $ & 10.00 & & $ & (10.00) \\ \hline Date of cash flow & 10 & & & 10 \\ \hline EMV & $ & 120.00 & & $ & 120.00 \\ \hline Days in Month & 31 & & & 31 \\ \hline \end{tabular} Started with $100 and invested an additional $10 on the 10th day of a 31-day month. Ending value =$120.00 Started with $100 and withdrew $10 on the 10th day of a 31-day month. Ending value =$120.00 "how many days did the portfolio have the contribution?" =20 out of 31 days. Homework: \begin{tabular}{|l|rr|r|rr|} \hline BMV & $200.00 & & $ & 700.00 \\ \hline Cash inflow & $ & 20.00 & & $ & (130.00) \\ \hline EMV & $ & 240.00 & & $ & 525.00 \\ \hline Date of cash flow & & 10 & & & 18 \\ \hline Days in Month & & 31 & & & 30 \\ \hline \end{tabular} Started with $200 and invested an additional $25 on the 5th day of a 31-day month. Ending value =$240.00 Started with $700 and withdrew $150 on the 15 th day of a 30-day month. Ending value =$525.00