Compounded Returns

[PrivateBanking]

Calculate the future value of a $100 investment for one year:

=100*(1+Jan%)*(1+Feb%)*...

The result, minus 100, is the annual return for the fund.
---------------------------------------------------------------------------------

Yeah, I did it that way too. I was just wondering is there
"ready-made"formula ? Like XIRR or something...

thanks for replying

 

[Tushar Mehta]

You would be a lot better off continuing the original discussion rather
than starting a new one that requires the reader to be familiar with the
old discussion.

That said, you can leverage XL's capabilities and use a simple array
formula (*). Suppose your monthly returns are in D112. Then, the
array formula =PRODUCT(1+D112) will give you what you want.

(*) An array formula is completed *not* with the ENTER key, but with the
CTRL+SHIFT+ENTER combination. If done correctly, *XL* will show the
formula enclosed in braces { and }
--
Regards,

Tushar Mehta
www.tushar-mehta.com
Multi-disciplinary business expertise
+ Technology skills
= Optimal solution to your business problem
Recipient Microsoft MVP award 2000-2004

 

[sottens]

Hi,
I followed your discussion and am comfronted with the same problem.
I do have an array of monthly returns (5 years) and would like to ge
an annual average.
If s.o. owns the end of the matrix I would be happy