Current location - Trademark Inquiry Complete Network - Futures platform - How to calculate the annualized rate of return?
How to calculate the annualized rate of return?
Investors put the principal C into the market, and its market value becomes V after time t, so in this investment:

1, and the return 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)-1or

(2)y=(v/c)^n- 1=(v/c)^(d/t)- 1

Where N=D/T represents the number of repeated investments by investors within one year. D stands for the effective investment time of one year, with bank deposits, bills and bonds being D=360 days, stocks and futures being 250 days, and real estate and industry being D=365 days.

Extended data:

Derivation process of annualized rate of return

Investors put the principal C into the market, and its market value becomes V after time t, so in this investment:

1, and the return 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)-1or

(2)y=(v/c)^n- 1=(v/c)^(d/t)- 1

Where N=D/T represents the number of times investors reinvest in one year. D stands for one year's effective investment time, with bank deposits, bills and bonds D=360 days and stock and futures markets D=250 days.

4. In the case of continuous multi-period investment, y = (1+k) n-1= (1+k) (d/t)-1.

Where: K=∏(Ki+ 1)- 1, T=∑Ti.

Baidu encyclopedia-annualized rate of return