hi,
Who can help me out calculatng cumulative returns out of monthly returns?
The column 'monthly return' is given data. The column 'cumulative return' is a geometric calculated and calculated in Excel as follow: =(1+monthly return)*(1+cumulative return(previous month))-1. I can't use Running Total because this tool uses arithmetic calculation.
A second option in Excel is using the product formula: {=product(1+monthly return(start):monthlyreturn(end))-1}
| date | monthly return | cumulative return |
| | | 0% |
| 01/31/2018 | 1.00% | 1.00% |
| 02/28/2018 | 3.00% | 4.03% |
| 03/31/2018 | -5.00% | -1.17% |
| 04/30/2018 | 2.00% | 0.81% |
| 05/31/2018 | 2.00% | 2.82% |
regards,
Henk
