Profit Calculation by Malcolm Morley

Profit Calculation by Malcolm Morley

For those who are unsure of some of the calculations used to determine returns, the two threads below discuss the subject at some length. In particular the latter part of the second thread is worth reading, thanks to the input from Tom Schneider (tsch)

For those who are unsure of some of the calculations used to determine returns, the two threads below discuss the subject at some length. In particular the latter part of the second thread is worth reading, thanks to the input from Tom Schneider (tsch)

Extract:

quote:

If your monthly returns are: +10%, +15%, -7%, -13%, +24% your cumulative return is

=((1+10/100)*(1+15/100)*(1+(-7)/100)*(1+(-13)/100)*(1+24/100)-1) *100 = 26.91%