InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
AI Subscribe Login/Register account icon
S&P 500
5,751.07
(
0.90%
)
US TECH 100
19,476.00
(
1.10%
)
Dow Jones
42,352.75
(
0.81%
)
Brent Oil
77.97
(
0.00%
)
Bitcoin
61,948.72
(
-0.20%
)
Post# of 79025
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next

jimapplesmith

Send PM Follow Ignore
Followers 2
Posts 69
Boards Moderated 0
Alias Born 02/01/2003

jimapplesmith

Re: wild_card post# 21703

Friday, 02/24/2006 10:05:45 AM

Friday, February 24, 2006 10:05:45 AM

Post# of 79025
wild_card,

If you put 1 or 2 in cell M$4, then the following formula for collum L computes the 1x or 2x results:

L75
=IF(N74="long",L74*(1+M$4*(E75/E74-1)),IF(N74="short",L74*(1-M$4*(E75/E74-1)),L74))

And =((L5122/10000)^0.05-1)*100 computes the 20 year compound annual return.

(edit: in the program sheet)

Arithmatic mean of annual returns is not very meaningful. For example, if year 1 has return of 100% and year 2 has -50%, the average of two is 25%. However, the actual total gain is actually 0%, which is dramatically different from 25%.

Jim


Public Reply Private Reply New Post
Keep Last Read
Replies (1) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (1) Next 10 Prev Next
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up