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RBC Direct Investing Community – Terms of Service
including any changes or modifications that you make to your portfolio. However, only you can
see the quantity or dollar values of your holdings. Other members will only be able to see your
percentage (not quantity or dollar) holdings and will therefore not know the size of your portfolio.
While you may compare the performance of your portfolios to those of other members with a view
to learning from them, bear in mind that your investment goals and personal circumstances may
differ from theirs. Furthermore, a security (or portfolio) that has performed well in the past may not
necessarily deliver similar results in the future. Note also that some members of the Site are
practice account holders. Although practice accounts allow you to mimic various types of
transactions that may be conducted through a real RBC Direct Investing account, you should be
aware that no actual trading occurs within the practice account.
Rate of Return
Where used, Risk Adjusted Return (RAR) will be calculated as the Sharpe Ratio (a measure of
the excess return earned over the risk free rate for each unit of risk assumed) of the relevant
holdings using the following formula:
R p - R f
σ p
Where Rp = Return of the Portfolio
Rf = Risk-free Rate {3-year average yield on 3-month Canadian treasury bills (monthly
series)}
σ p = Standard Deviation of the Portfolio
Return of the Portfolio (Rp) =
Closing Market Value – Opening Market Value – Net External Inflow of Cash and/or securities
Opening Market Value
Daily returns and standard deviation will be calculated for each goal over the relevant holding
period up to a trailing 12 month period and will be based on closing market values beginning on
the second business day following the enrolment of a goal into the Community. Any goal with an
end of day value of less than ten dollars ($10.00) on any given day will be excluded from return
and standard deviation calculations for that day until its value exceeds ten dollars ($10.00) for two
consecutive days. On days where a goal has a closing value of less than ten dollars ($10.00) it
will be shown in the Universe at the last calculated valid return and standard deviation (volatility).
While return and volatility values may exceed 100%, the visual display on the Universe will be
capped at 100% on both the return and volatility axes. Values exceeding 100% will be shown
along the 100% line on the relevant axis.
Note that certain corporate actions including but not limited to spinoffs, stock splits, reverse splits,
mergers, acquisitions, may impact the accuracy of returns and volatility calculations.
Please pay attention to the age of a portfolio when looking at its performance, as volatility and
returns are more meaningful when measured over a longer period of time.
Your Identity
While other members of the Direct Investing Community only know you by your username, your
real identity is known to RBC Direct Investing. RBC Direct Investing may, monitor, collect and
use your personal information, including email address, User Content and any other information
for purposes of administering the Site or as permitted by law. We may disclose this information to
securities regulators, relevant authorities and any other parties, as permitted by law. For more
information on how we collect, use or disclose your information, please see Our Privacy Policy.
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