How to calculate annualized return in Excel?

CFA General
#1

with monthly returns? Can’t seem to figure it out.

#2

Somebody help meee

#3

If your MONTHLY returns are listed horizontally across columns from G2 to AT2: {=PRODUCT(1+G2:AT2)^(12/COUNTA(G2:AT2))-1} The “{}” means you have to hit CTRL+SHIFT+ENTER because it’s an array…

#4

d

#5

either use geomean(A1:A12+1)^(12)-1 or product(A1:A20+1)^(12/20)-1. Don’t forget that it’s array formula so use Ctrl+Alt+Enter

#6

Thanks peeps! Appreciate the help

#7

Just don’t let the GIPS guys catch you annualizing a bunch of stuff.