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

1
balances(ratios, initial = 10000)

Arguments

ratios

Numeric vector of ratios between subsequent stock 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.

Value

Numeric vector indicating balance at each time point.

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

final.balance

Examples

1
2
3
4
5
6
7
8
# 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)

Questions? Problems? Suggestions? or email at ian@mutexlabs.com.

All documentation is copyright its authors; we didn't write any of that.