Credit: For example, let's say that you have an investment that pays a 0.03% daily return, which in decimal format is 0.0003. From this information, you can convert to annual returns using the above formula:
For example, let's say that you have an investment that pays a 0.03% daily return, which in decimal format is 0.0003. From this information, you can convert to annual returns using the above formula:
Converting other returns to annual
You can convert from weekly or monthly returns to annual returns in a similar way. Simply replace the 365 with the appropriate number of return periods in a year. So, for weekly returns, you would raise the daily return portion of the equation to the 52nd power. For monthly returns, you would use 12. And, for quarterly returns, you would use the fourth power.
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