Cummulative Return

[Biff]

Can someone help me with a funciton that calculates the cummulative return of
an investment over time.

Example:

1 yr - 25%
2 yr - 35%
3 yr - (10%)
4 yr - 5%

 

[Harlan Grove]

Can someone help me with a funciton that calculates the cummulative
return of an investment over time.

Example:

1 yr - 25%
2 yr - 35%
3 yr - (10%)
4 yr - 5%

Add 100% to each of these, take the geometric average, and subtract 1. If
the returns were in C2:C5, try the array formula

=GEOMEAN(100%+C2:C5)-1

Without array entry,

=EXP(SUMPRODUCT(LN(1+C2:C5))/COUNT(C2:C5))-1

 

[Biff]

Hi Harlan,

This gets me the annualized rate of return, but I am looking for the
cummulative (total) rate of return over the four year period. Any help?

Thanks,
Biff

 

[Biff]

I think I figured it out. Can you tell me if the following will give me the
correct value:

=PRODUCT(1+C12:H12)-1

 

[Steve G]

I think I figured it out. Can you tell me if the following will give me the
correct value:

=PRODUCT(1+C12:H12)-1






- Show quoted text -

I believe this is the answer:

==1+C1+C2+C2*C1+C3+C3*(C2+C2*C1)+C4+C4*(C3+C3*(C2+C2*C1))

I am sure there is a better way of writing this and if you have the
answer I would appreciate it if you could pass it on.

Steve G


I believe this is the answer