Investors annualize returns of less than one year. As mentioned, a monthly rate of return is often annualized to project the returns on a stock over the next 12 months. Quarterly figures are also frequently annualized when analyzing a company’s metrics, such as its earnings and sales. Why I...
tis a single period (e.g. 1 month),σtis the standard deviation over a single time period. In that caseσTis the T-period volatility. For example, ifσtis a monthly measure of volatility, than multiplying the value with the square root of 12 will give you theannualized volatility....
So, if you were to invest $10,000 at an APY of 26.82 percent, you would make $2,682 as interest in a year, or $223.50 per month. That would be enough to offset the monthly debts stated above. Now, suppose you made another investment at similar rates...
If you have a monthly rate of return, you would compound the rate by 12. A weekly return would be compounded by 52, while a daily return would be compounded by 365. 2 Calculate your rate of return. To calculate the rate of return on your investment, subtract the ending value of your...