Talk:Rate of return/Archives/2020
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Returns over multiple periods
The logarithmic return over a single period should be adjusted for flows, just the same as the ordinary return. How to adjust for flows requires a convention, the same as the ordinary return, i.e. time-weighted or money-weighted, etc. When there are flows intra-period, and you calculate the logarithmic return using a time-weighted method, and you then combine the logarithmic return over two or more periods, the result will be the same as the time-weighted logarithmic return over the whole period. (If you are a mathmo, you can prove it if you try.) For money-weighted methods however, in general the sum of the subperiod logarithmic returns will not be the same as the logarithmic return over the whole period. --Jonathan G. G. Lewis 02:33, 21 February 2020 (UTC)
Annualization of a one day return
In the article, it is confirmed by a citation of CFA Institute's Global Investment Performance Standards (GIPS) that "Returns for periods of less than one year must not be annualized." In the article, there is also an example annualizing a daily return, which looks as an extreme violation of the above mentioned rule. Since the example is not confirmed by a citation of any WP:IRS, I consider it a WP:OR contradicting an already cited reliable source and thus propose its deletion. Ladislav Mecir (talk) 13:33, 2 November 2020 (UTC)