The annualized rate of return is: annual income ÷ the invested principal × 100%. For example: if you invest 1 million, the annual income is 200,000, the annualized rate of return is, 20÷100×100%=20 %.

The annualized rate of return is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into the annual rate of return. It is a theoretical rate of return and is not a truly achieved rate of return. rate of return. For example, if the daily rate of return is one ten thousandth, the annual rate of return is 3.65% (an average year is 365 days).

Because the annualized rate of return changes, the annual rate of return is not necessarily the same as the annualized rate of return.

Extended information:

Quantitative formula for annualized return:

Overview: Investors invest principal C in the market, and after time T, their market value changes is V, then in this investment:

1. The income is: P=V-C

2. The rate of return is: K=P/C= (V-C)/C=V /C-1

3. The annualized rate of return is:

(1) Y=(1+K)^N-1=(1+K)^(D/ T)-1 or

(2)Y=(V/C)^N-1=(V/C)^(D/T)-1

Where N= D/T represents the number of times an investor makes repeated investments within a year. D represents the effective investment time of one year, D=360 days for bank deposits, bills, bonds, etc., D=250 days for stocks, futures and other markets, D=365 days for real estate and industry, etc.

4. In the case of continuous multi-period investment, Y=(1+K)^N-1=(1+K)^(D/T)-1

Among them: K=∏(Ki+1)-1, T=∑Ti