The annualized rate of return and the internal rate of return are the same, there is no difference.
The annualized rate of return is only 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 the real actual rate of return. The rate of return obtained. Annualized rate of return is the annual rate of return converted from the net income of every 10,000 fund shares of a currency fund in the past seven days.
1. The annualized rate of return refers to the rate of return obtained with an investment period of one year.
2. Annual rate of return = [(investment income/principal)/number of investment days] * 365 ×100%
3. Annualized income = principal × annualized income Rate
4. Actual income = principal × annualized rate of return × number of investment days/365
Extended information:
Calculation method
Quantitative formula
Overview: An investor invests principal C in the market, and after time T its market value becomes 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: p>
(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 repeated investments by the investor 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
Baidu Encyclopedia-Annualized Return