Hi guys, I hope you can help me out so thanks for your time.
I have encountered a problem in class where we were given daily average returns as a percentage, lets say x%, now I have annualised this using:
((((x/100)+1)^365)-1)*100
which I hope is right.
But, some of these daily returns are negative, -x%. So I am basically wondering if the formula I have used so far is right, and if you can use the same formula for the negative returns or is there anything you have to change in case of negative returns?
Thanks for your time.
I have encountered a problem in class where we were given daily average returns as a percentage, lets say x%, now I have annualised this using:
((((x/100)+1)^365)-1)*100
which I hope is right.
But, some of these daily returns are negative, -x%. So I am basically wondering if the formula I have used so far is right, and if you can use the same formula for the negative returns or is there anything you have to change in case of negative returns?
Thanks for your time.