That is, annualized rate of return = [(20000/350000)/14] * 365×100% =148.98%.
The annualized rate of return refers to the rate of return obtained when the investment period is one year. It is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return, which is a theoretical rate of return, not an actual rate of return.
Extended data:
Quantitative formula of annualized rate of return:
Summary: 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.
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.
References:
Annualized rate of return-Baidu Encyclopedia