<t>Hi,I have an equity portfolio that was widely varying in size over the last 5 years, and the amount invested had no correlation with the portfolio returns. I am wondering which is the best way to represent 5 year returns on the portfolio. I am not sure if compounded returns are accurate as the po...

<t>Hey, It depends on what you are looking for. As such, there are no closed forms/iterative methods available. Most pricing will fall under categories of future simulations of default / loss/ prepay rates as a function of interest rates and then top a MC on it, to get waterfalls based on which pric...