Anyone how to calculate rate of return in the following case?

[yccheok]

Giving the following investment performance.

I bought a stock at price 1k during 1/1/2000. At 31/12/2002, the total stock value worth 8000.

01/01/2000 -1000
31/12/2002 8000

If we calculate using XIRR,

[Image: KV8br.png]

we can know this investment gives us average yearly return 1.0 (100%)

However, if I want to know what is "The total return for 3 years"

Is the following calculation makes sense?

(8000 - 1000) / 1000 = 7.0 (700%)

By the way, I just finished implementation of XIRR in Java : https://github.com/yccheok/xirr

I tested against XIRR in Google Spreadsheet. It seems correct so far. Feel free to contribute. The source code is released under public domain. Everyone is free to modify and use it in any way you want.

[CY09]

yes it makes sense

[CityFarmer]

May I suggest to merge this thread into the previous similar thread?

http://www.valuebuddies.com/thread-5384.html

The reason is to consolidate similar info into one thread, for ease of future reference.

Regards
Moderator

[yccheok]

May I suggest to merge this thread into the previous similar thread?

http://www.valuebuddies.com/thread-5384.html

The reason is to consolidate similar info into one thread, for ease of future reference.

Regards
Moderator

I'm totally fine regarding the thread merging. But, how can I do so?

[CityFarmer]

May I suggest to merge this thread into the previous similar thread?

http://www.valuebuddies.com/thread-5384.html

The reason is to consolidate similar info into one thread, for ease of future reference.

Regards
Moderator

I'm totally fine regarding the thread merging. But, how can I do so?

You can't, only moderator can do it. I reckon you might has a good reason to start a seperate thread.

I will merge them, thanks

Regards
Moderator