Hot answers tagged return
1
I'm currently also using daily returns which I want to annualize. This is my approach:
For every month, I calculate the simple return using the formula: (end-of-month closing price / beginning-of-month closing price) - 1.
I use the Excel formula somproduct(geomean(A1:A12+1)-1) to find the monthly compounded return.
Finally, I annualize the result of step 2 ...
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