StockFetcher Forums · General Discussion · Formula please<< >>Post Follow-up
SAFeTRADE
644 posts
msg #70271
Ignore SAFeTRADE
12/31/2008 5:23:28 PM

Assuming a 1.25 percent daily increase in a portfolio, what would the rate of return be annually.
What is the excell formula to figure this. Anyone.

Thanks

stocktrader
294 posts
msg #70273
Ignore stocktrader
modified
12/31/2008 9:37:50 PM

This seems like a mixing of apples and oranges to get a lemon.

This would be an "annual" compounded interest rate of 14.9% based on 250 trading days
Assuming $100,000 at start of year with 1.25% daily compounded increase, future value is $222,700 (+123%)

=100000*((1+((14.9/100)/250))^(250*(250/12)))

SAFeTRADE
644 posts
msg #70274
Ignore SAFeTRADE
12/31/2008 9:49:19 PM

Thanks you, I appreciate it very much.

SAFe

stocktrader
294 posts
msg #70275
Ignore stocktrader
12/31/2008 9:58:32 PM

Welcome, but I think I just noticed an error in the formula......

stocktrader
294 posts
msg #70277
Ignore stocktrader
modified
12/31/2008 10:10:44 PM

This is better:

Assuming $100,000 at start of year with 1.25% daily compounded increase, future value is $2,221,331 (+2132%)

=100000*((1+((312/100)/250))^(250*(250/250)))

The 312 is divided by 250 to get 1.25%
I know this formula could be reduced, but I hacked one of my other formulas.
This is basic time value of money (TVM).



SAFeTRADE
644 posts
msg #70281
Ignore SAFeTRADE
1/1/2009 9:55:16 AM

Thanks again stocktrader, excellent.

safetrade

gmatt539
2 posts
msg #70297
Ignore gmatt539
modified
1/1/2009 3:46:04 PM

For future reference

The formula for compounding : FV = PV * (1 + r) ^ t

PV= present value; r = interest rate ; t = time

so assuming r = .0125 and t = 250

$1 will grow to $22.32 in one year (250 trading days at 1.25% per day)

formula in excel =1*(1 +.0125)^250

traderseb
36 posts
msg #70336
Ignore traderseb
1/2/2009 2:37:37 PM

More better might be:

r = interest rate per period

t = periods

SAFeTRADE
644 posts
msg #70337
Ignore SAFeTRADE
1/2/2009 2:39:59 PM

Thanks to all, greatly appreciated.

safetrade

StockFetcher Forums · General Discussion · Formula please<< >>Post Follow-up

*** Disclaimer *** StockFetcher.com does not endorse or suggest any of the securities which are returned in any of the searches or filters. They are provided purely for informational and research purposes. StockFetcher.com does not recommend particular securities. StockFetcher.com, Vestyl Software, L.L.C. and involved content providers shall not be liable for any errors or delays in the content, or for any actions taken based on the content.


Copyright 2022 - Vestyl Software L.L.C.Terms of Service | License | Questions or comments? Contact Us
EOD Data sources: DDFPlus & CSI Data Quotes delayed during active market hours. Delay times are at least 15 mins for NASDAQ, 20 mins for NYSE and Amex. Delayed intraday data provided by DDFPlus


This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.