Annualized Return

Annualized Return is the average amount of money earned by an investment each year over a given time period.

daily returns you have to multiply average daily return by 252 (252 trading days of year). For monthly returns multiply the average monthly return by 12 and for weekly returns multiply average weekly returns by 52.

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Annualized Return Examples

A stock price has average monthly return of 1.5%. The annualized return is 1.5% x 12 = 18%

A stock price has an average daily return of 0.5%. The annualized return is 0.10% x 252 = 25.2%

Before proceeding with annualizing a return the average return must be calculated for a specific period (daily, weekly, monthly).