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Investing Glossary: Annualized gain

Copyright 2009, Campbell R. Harvey. All Rights Reserved.
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Term:
Annualized gain
Definition:
If Stock X appreciates 1.5% in one month, the Annualized gain for that stock over a twelve month period is 121.5% = 18%. Compounded over the 12 month period, the gain is (1.015)^12 -1 = 19.6%.



 

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