Calculate stock portfolio returns and turnover in Excel | Financial Modeling Tutorials

A financial modeling tutorial on calculating stock portfolio returns, drift and portfolio turnover in Excel for quantitative investment portfolio management and portfolio analysis in Quant 101.
For the full video transcript with Excel formulas see:
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01:13 - Outline for this tutorial
01:40 - Step 1 - Calculate Monthly Portfolio Return
05:54 - Step 2 - Periodic Returns
07:47 - Step 3 - Compute Average Portfolio Return
13:42 - Step 4 - Analyze Rebalancing
20:21 - Step 5 - Next: Portfolio Risk
To see the outline for the series, see:
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[@Factorpad]

At the 16:55 mark in the video when we calculate portfolio turnover, keep in mind that at the same time we need to buy MSFT with the proceeds from the EBAY sell. This is the math: MSFT was 0.5281 before the rebalance and we add the proceeds from EBAY sell of 0.0082 which equals 0.5363 or 50% of the ending portfolio value of 1.0726. From here you can say that the whole portfolio is now 100% after the April rebalance and we're ready for the next monthly return and rebalance in May. Again, the portfolio turnover measure is normally a one-side measure, but practically we can't forget about what we're doing with the proceeds. I hope that helps to clarify. -Paul

[@rayjonga8709]

How do you find the average return for cash over the last 6 months? Assuming it earns interest

[@raytrack3552]

How do I get excel to chart a running total of my portfolio? I want excel to produce a chart like my cell phone does