In using the Portfolio Analyzer, would it be possible to get more info on Expected Return?

macjack39

In particular, how the Expected Return is calculated. I have no issue with the calculation of the Standard Deviation, but with other tools I am getting significantly different answers for Expected Return. Is more info available on how the Expected Return is calculated?

Jim_Harman

The Portfolio Analyzer is accessed by enabling Classic Menus from the View menu then selecting Investing > Investing Tools > Portfolio Analyzer. As far as I can tell, its assumptions have not been updated in many years, and Quicken has not documented how the Expected Return is calculated.

There is no new information on this subject since you asked essentially the same question in July
https://community.quicken.com/discussion/7915783/using-quicken-portfolio-analyzer

macjack39

I do wish they could be more transparent about it. As a long time investor, there are two things that are essential in managing a portfolio: 1. how much risk do you have in the portfolio and 2. what is the expected return. I know there are target portfolios that one can invest in, so, if you invest in a Conservative Portfolio, that would be less risky than say investing in an aggressive portfolio with a high percentage of equities. However, there are tools available now that enable one to determine more precisely what their actual risk is (standard deviation of the total portfolio) as well as calculating the expected return for the portfolio. I would like to believe that Quicken now does that with the Portfolio Analyzer, but without validation of some kind - well the old song - you know what happens when we assume something is so.

Chris_QPW

Personally I believe that if you have to turn on the Classic view to find a given tool, that is a strong indication that that Tool isn't being maintained by Quicken Inc.

And when you are talking about calculating risk and returns at best the information is probably out of date, if not outright not calculated as one might expect.

BTW I have a feeling that they don't calculate either of these, but instead get them from their security quote/information service.  If you have securities without symbols both numbers will be "Unknown".