Active Return

Finance, a la shmoop. What is an annualized return? Alright people, well

when you invest a dollar you hope or even expect to get more than a dollar [ATM machine]

back, at some point. And let's say you invested that dollar in Terminators

Closet -a leading dealer in cybernetic body enhancements. And it went from $1 a

share to a dollar ten six months later. Alright, nice return.

You made 10% in just six months but in most investing discussions ,investment [spreadsheet shown]

returns are discussed in the form of annual returns, not monthly or daily or

biannual numbers, so you need to convert your six-month return into an annualized [angelic glow]

one, and you can do the process here of computing that number that is if you made

10% in six months well then in a year presumably you could notion that you'd

have made 20%. It's not that you would have guaranteedly made 20% it's just [spreadsheet shown]

the math saying that well if you had compounded at that rate then you'd have

made 20%, so what if she made 10% in a month? Well the stock went from a buck a

share Jan 1 to a buck ten a share by Feb 1 .Well if you impute so that you can [calendar shown]

compute that month's gain of 10% would carry a compound rate of a hundred

twenty percent. Right ? You're multiplying 12 months times 10 there, that'd be

annualizing it meaning, that at that rate you are more than doubling your money on [spreadsheet shown]

an annualized return basis. And that's more than enough dough to keep

terminators closet popping out those Wi-Fi enabled contact lenses faster than [woman watches TV]

people can wear them.