Lux Investing
Financial math formula for calculating APR investment return based on time and money invested. Options invest.
Buying and selling options. Different amount invested on different days and PL different amounts and dates. Total APR calculated for all amounts in one formula?
Public Comments
- I presume that by APR you mean Annual Percentage Rate. For one trade you have APR = (c1/c0) ^ (1/(t1-t0)) where c0 is the amount invested at t0 and c1 is the amount taken out at t1. (Both times in years.) For more than one trade you can use the Excel IRR function or calculate t0 and t1 as capital weighted time averages.
