
Hi List,

 

 

 

This is a very simple question and I am feeling bit silly to ask, but googling around does not seem to allow me to confirm what I thought...

 

 

What I thought correct is (assuming 252 trading days in a calendar year):

 

arithmetic daily returns (Pt/Pt-1) & Geometric annualization (1+ Arithmetic Average Daily Ret) ^ 252 -1

OR 

Geometric daily returns (Log(Pt/Pt-1)) & Arithmetic Annnualization (Arithmetic Average Daily Ret)*252

 

AND Both calculation should give the same final annualized return. 

 

 

But a simple test in XL proves me wrong...

 

 

What I do I do wrong? 

 

Many thanks in advance - any feedback appreciated - & apologies for the simplicity of the question

 

 

 

Best regards,

Julien

 

 

 
 		 	   		  
	[[alternative HTML version deleted]]

