# Annualized gain

## 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 ?
That brought the three-month annualized gain to 25.3 percent, the fastest pace in figures going back to 1992.
The fund, which invests in a split of 60% stocks/40% bonds, convertibles, leveraged loans and cash, has beaten its category average every year since 2008 and returned a 9.2% annualized gain since June 2006 when Giroux took the helm.
The HFRI Fund Weighted Composite Index has generated an annualized gain of just 1.7% over the past five years.
Average hourly earnings declined one cent, for an annualized gain of 2.5 percent, mostly because wages were unusually weak in December 2014.
Japan's economy - the world's third-largest - narrowly avoided a technical recession this year after its growth for the quarter ending September, initially thought to have fallen by 0.8 percent, was revised to an annualized gain of 1&nbsp;percent, according to (http://www.esri.cao.go.jp/en/sna/data/sokuhou/files/2015/qe153_2/gdemenuea.html) official data &nbsp;in December,&nbsp;giving the BOJ some leeway to adjust monetary policy and stimulus measures.
Although that's still very low, it's the biggest annualized gain since December 2014.
Since 2009, the Standard & Poor's 500 Index has rallied more than 200 percent, roughly matching the average annualized gain in the last seven bull markets.
The nearly 20 percent annualized gain is twice the rate of growth in the S&P 500.
The fourth quarter decline follows an annualized gain of 3.1% in the third quarter.
Even if you adjust for inflation, it's still a 13 percent annualized gain.
Meanwhile, formerly hard-hit Las Vegas showed an 8.6% annualized gain, Miami a 16.1% gain, and Phoenix a 30.4% average annualized home price gain.
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