Calculate Balances Based on Initial Balance and Vector of Ratios

Description

Calculates vector of balances based on initial balance and vector of ratios from one time point to the next (i.e. proportion gains + 1). This is a simple function containing this R code: initial * cumprod(ratios)

Usage

balances(ratios, initial = 10000)

Arguments

Details

NA

Value

Numeric vector indicating balance at each time point.

Note

NA

Author(s)

Dane R. Van Domelen

References

Acknowledgment: This material is based upon work supported by the National Science Foundation Graduate Research Fellowship under Grant No. DGE-0940903.

See Also

NA

Examples

# Randomly generate daily stock gains over a 5-year period
stockgains <- rnorm(251*5, 1.001, 0.02)

# Create vector of balances if initial balance is $10,000
bals <- balances(stockgains)

# Plot results
plot(bals)

Results