They offer the following ways of parsing the index data. Which do I want to use to generate the standard annualized returns? Annual - Percent Change?
thanks.
Change
x(t) - x(t-1)
Change from Year Ago
x(t) - x(t-n_obs_per_yr)
Percent Change
((x(t)/x(t-1)) - 1) * 100
Percent Change from Year Ago
((x(t)/x(t-n_obs_per_yr)) - 1) * 100
Compounded Annual Rate of Change
(((x(t)/x(t-1)) ** (n_obs_per_yr)) - 1) * 100
Continuously Compounded Rate of Change
(ln(x(t)) - ln(x(t-1))) * 100
Continuously Compounded Annual Rate of Change
((ln(x(t)) - ln(x(t-1))) * 100) * n_obs_per_yr
Natural Log
ln(x(t))