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I need some assistance in simplifying a formula that calculates the
annualized return using quarterly returns. I have a spreadsheet that I have calculated the quarterly returns on my investment account for the past 7 years. To get an annualized return for the past 7 years (and going forward) my formula looks like this with the letters representing quarterly returns. ((a%+1)*(b%+1)*(c%+1)........)^(1/(# of quarters)-1 So each quarter I have to add another quarter of data to the formula which get tedious when doing it on several investment portfolios. Is there a simpler way of doing this? An array which takes care of the (a%+1)*(b%+1) etc... formula that I can keep copying each quarter. I do calculate the 3yr and 5yr returns also but those formulas stay the same with 3 years having 12 quarterly returns and 5yr having 20 quarterly returns each |
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