R: Calculate Growth Rate From a Vector of Stock or Investment...
gains.rate
R Documentation
Calculate Growth Rate From a Vector of Stock or Investment Gains
Description
The formula is simply: overall.rate = prod(gains + 1) - 1. If xday is specified, then it converts to x-day growth rate. For example, if balances is a vector of stock gains over a five-day period, say c(-0.02, -0.01, 0.01, 0.02, 0.01), then the total growth rate is approximately 0.0095 over five trading days. If xday.rate is set to 1, this rate is converted to an average daily rate of approximately 0.0019.
Usage
gains.rate(gains, xday.rate = NULL)
Arguments
gains
Numeric vector of stock or investment gains. Has to be daily gains if you want to calculate x-day rather than overall growth.
xday.rate
Number of days for growth rate calculation. If unspecified, function returns total growth. If set to 251, function would return annual growth rate.
Details
NA
Value
Numeric value indicating the growth rate.
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
# Create vector of daily gains for a hypothetical stock
daily.gains <- c(-0.02, -0.01, 0.01, 0.02, 0.01)
# Overall growth is 0.95%
gains.rate(daily.gains)
# Average daily growth is 0.19%
gains.rate(daily.gains, 1)
# Corresponds to 60.7% annual growth
gains.rate(daily.gains, 251)