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Formula for Annualized Return

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Brent Bigler

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Sep 26, 1997, 3:00:00 AM9/26/97
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Does anyone know where I can find the formula for the annualized return on
an investment? Or, perhaps someone could post it.

I'd be forever grateful for any help.

Br...@Bigler.com


Brent Bigler

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Sep 26, 1997, 3:00:00 AM9/26/97
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I asked this question, then found the simple answer, and now I have a harder
question having to do with mutual fund investing:

How is annual return calculated when a person is investing using dollar cost
averaging (e.g., monthly investments), taking dividends in cash, and
reinvesting capital gains?

My guess is that return will have to be calculated for each share purchased,
then an average taken of all returns. For dividends paid in cash, however,
the return would have to be calculated on some kind of yield basis, then the
average of all yields added to the return of the purchased shares.

I'm a bit confused on this whole thing, however, so any help would be
greatly appreciated.

Thanks.

Br...@Bigler.com

Glenn M. schultz

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Sep 27, 1997, 3:00:00 AM9/27/97
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Now you have to calculate time weighted rates of return. A detailed
description can be found in AIMR performance presentation standards.

Brent Bigler <br...@bigler.com> wrote in article
<60gu5l$c2g$1...@feedme.news.iswest.net>...

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