Annual Return Formula
I want to calculate the annual return:
Year Return 2004 16.7% 2005 3.2% 2006 13.6% Annual Return 11.0% <== what formula / array should I use to calc? |
Annual Return Formula
If you mean the Average return then with your data in A1:B4 then
=AVERAGE(B1:B3) *Provided* the individual averages are of the same proportion. ie 5/10, 5/100, 5/1000 is 50%, 5%, 0.5% with an *average* of 18.5% but there are 15 *Returns* out of 1110 items which is really a percentage of 1.35% -- HTH Sandy In Perth, the ancient capital of Scotland and the crowning place of kings Replace @mailinator.com with @tiscali.co.uk "Lightjag" wrote in message ... I want to calculate the annual return: Year Return 2004 16.7% 2005 3.2% 2006 13.6% Annual Return 11.0% <== what formula / array should I use to calc? |
Annual Return Formula
(1+0.162)*(1+0.032)*(1.136)=(1+r)^3
or 1.162*1.032*1.136=(1+r)^3 so r= (1.162*1.032*1.136)^(1/3)-1 best wishes -- Bernard V Liengme Microsoft Excel MVP www.stfx.ca/people/bliengme remove caps from email "Lightjag" wrote in message ... I want to calculate the annual return: Year Return 2004 16.7% 2005 3.2% 2006 13.6% Annual Return 11.0% <== what formula / array should I use to calc? |
Annual Return Formula
Sandy's reply reminded me of the GEOMEAN function:
=GEOMEAN(1+C2,1+C3,1+C4)-1 where C2:C4 hold your 16.7%,3.2% AND 13.6% values best wishes -- Bernard V Liengme Microsoft Excel MVP www.stfx.ca/people/bliengme remove caps from email "Lightjag" wrote in message ... I want to calculate the annual return: Year Return 2004 16.7% 2005 3.2% 2006 13.6% Annual Return 11.0% <== what formula / array should I use to calc? |
Annual Return Formula
"Bernard Liengme" wrote in message
... Sandy's reply reminded me of the GEOMEAN function: Glad that I do something around here <g -- Sandy In Perth, the ancient capital of Scotland and the crowning place of kings Replace @mailinator.com with @tiscali.co.uk |
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