Converts a daily proportion gain to a corresponding annual (or several year) gain. For example, an investment that gains 0.1% per day would gain approximately 28.5% in a year (251 trading days). The formula is: total.gain = (1 + daily.gain)^(251 * years) - 1. Here total.gain and daily.gain are proportions (e.g. 0.15 for 15%).
daily.yearly(daily.gain, years = 1)
Numeric value (or vector) representing the daily proportion gain of a security or investment.
Number of years over which you would like to calculate the corresponding total gain. For example, set to 3 if you wish to calculate the 3-year gain for a security that has a daily gain of daily.gain.
Numeric value indicating total gain.
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.
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