balances: Calculate Balances Based on Initial Balance and Vector of...
In stocks: Stock Market Analysis

Description Usage Arguments Value Author(s) References See Also Examples

Calculates vector of balances based on initial balance and vector of ratios from one time point to the next (i.e. proportion gains + 1). The formula is simply: initial * cumprod(ratios).

1	balances(ratios, initial = 10000)

`ratios`	Numeric vector of ratios between subsequent investment prices (i.e. proportion gains + 1). For example, if a stock gained 3%, lost 1%, then lost 2%, `ratios` would be `c(1.03, 0.99, 0.98)`.
`initial`	Initial balance.

Numeric vector indicating balance at each time point.

Dane R. Van Domelen

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

final.balance

# Randomly generate daily stock gains over a 5-year period
set.seed(123)
stockgains <- rnorm(252 * 5, 1.0003, 0.02)

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

# Plot results
plot(bals)