Annualized gain

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Annualized gain

If stock X appreciates 1.5% in one month, the annualized gain for that stock over a twelve month period is (12 x 1.5%) = 18%. Compounded over the 12 month period, the gain is (1.015)^12 -1 = 19.6%.

Annualized Gain

A gain on an investment expressed in yearly terms, even though the variable does not directly apply to a year. That is, an annualized gain has been mathematically converted to yearly terms. For example, if the return rate on an investment is 2% after one month, one computes the annualized return by multiplying by 12, resulting in a 24% return rate. An annualized variable is often theoretical; there is no guarantee that the return rate in the example above will be 24% if it is calculated after only a month or two.
References in periodicals archive ?
In a recent report, Brian Nick, chief investment strategist at TIAA Investments, wrote that over the past 20 years emerging market bonds had annualized gains of 6.
7 per cent YTD, but has posted annualized gains of +10.
Since 1990, the category has achieved annualized gains of 13.
The South Atlantic states and West North Central states showed the third-highest annualized gains at 7.
Strong annualized gains in both the structures (+9.