Read? Measure, Measure, Measure (3)
I realize that some of you may have problem using CAGR to measure your performance as you may periodically add more capitals into your portfolio.
In this case, you may want to use Microsoft Excel function: XIRR to calculate and return the internal rate of return of an investment. IRR (Internal Rate of Return) is quite close to CAGR as an alternate mean of measuring performance.
I have provided three examples on how to use XIRR when you add more capitals as follows:......