stocks (version 1.1.1)

convert.rate: Convert Gain from One Time Interval to Another

Description

This is a simple function to convert a proportion gain over one time interval to a proportion gain over a different time interval. For example, you can use this function to figure out that a stock gain of 0.08 (8%) over 70 trading days corresponds to a 251-day or annual gain of 0.19 (19%).

Usage

convert.rate(rate, days.in = 1, days.out = 1)

Arguments

rate

Numeric value (or vector) representing the growth rate of a security or investment over a period of days.in days.

days.in

Number of trading days over which the security of interest had a growth rate of rate.

days.out

Number of trading days you would like to calculate a growth rate for.

Value

Numeric value (or vector) indicating the proportion gain over days.out days.

Details

NA

References

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

See Also

NA

Examples

# Calculate the annual growth rate of a stock that gains 1% per week.
convert.rate(rate = 0.01, days.in = 5, days.out = 251)

# You invest in AAPL and gain 0.5% in 17 business days. Express as a 5-year growth rate.
convert.rate(rate = 0.005, days.in = 17, days.out = 251*5)

# Your portfolio has tripled in a 13-year period. Calculate your average annual gain.
convert.rate(rate = 2, days.in = 13*251, days.out = 251)