Calculating Annualized Return Using Quarterly Returns

Yes, there is a simpler way to calculate the annualized return using quarterly returns. You can use the PRODUCT function in Excel to multiply all the quarterly returns together and then use the POWER function to raise the result to the power of 4 (since there are 4 quarters in a year). Here's how you can do it:

1. In a new cell, enter the PRODUCT function with the range of quarterly returns as the argument. For example, if your quarterly returns are in cells A1:A4, the formula would be:
   Formula:

   =PRODUCT(A1:A4) 

2. Next, use the POWER function to raise the result of the PRODUCT function to the power of 4. The formula would be:
   Formula:

   =POWER(1+PRODUCT(A1:A4),4) 

3. This will give you the annualized return for the past 7 years. To calculate the annualized return going forward, simply add the new quarterly return to the range and the formula will update automatically.
   
4. To calculate the 3-year and 5-year returns, you can use the same formula but with the appropriate number of quarterly returns. For example, for the 3-year return with 12 quarterly returns, the formula would be:
   Formula:

   =POWER(1+PRODUCT(A1:A12),4/12)-1 


Using this method, you can simplify your formulas and avoid the tedious task of adding each quarterly return to the formula.