-1
$\begingroup$

Really easy question, but I am having doubts. If you want annual turnover, and you have monthly weights, wouldn't you just do in excel:

{=ABS(CurrentMonthsWeights-LastMonthsWeights)*12} for each month and then just do average over the 12 months to get the annual turnover?

$\endgroup$

closed as unclear what you're asking by Attack68, LocalVolatility, byouness, phdstudent, JejeBelfort Jun 4 '18 at 0:47

Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.

  • 1
    $\begingroup$ Do you honestly expect people to know what you have in those two rows in your spreadsheet? $\endgroup$ – will Jun 1 '18 at 15:59
  • $\begingroup$ @will sorry. I fixed it $\endgroup$ – QFqs Jun 1 '18 at 18:01
3
$\begingroup$

Consider this: Let's say you sell 100% of asset A and buy 100% of asset B. Most people would consider this 100% turnover, not 200%. Therefore you want to take the sum of the absolute difference in weights and divide that by 2.

I suggest a few changes to your formula. First, importantly you would take SUM(ABS(CurrentWts - LastWeights))/2 for each month. Note the SUM function and I'm dividing by 2 instead of 12 because of the first point in my response. Then you would SUM your results for 12 months.

$\endgroup$

Not the answer you're looking for? Browse other questions tagged or ask your own question.