help! cumulative returns
Yes, we can.
My first suggestion is to change from storing returns to storing the index
value. If the index goes from 1000 to 1200 in your 13-week period, you can
easily calculate that it's gone up 20%.
If you insist on storing weekly returns, you can calculate a quarterly return
with the formula:
=(1+r1)*(1+r2)*(1+r3)*...*(1+r13)-1
where r1..r13 are the previous 13 weeks' returns.
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Regards,
Fred
"blapatrick" wrote in message
...
i'm trying to build a model that's based on cumulative quarterly S&P 500
returns. however, rather than using the actual returns (that only come out at
each quarter's end), i want to create a quarterly return for each week based
on the weekly returns for the previous 13 weeks. i have yet to find a
function in excel that will take a set of interest rates over equal periods
and return the effective (cumulative) rate for that period. can anyone help?
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