From prices to returns

Financial Analytics in Google Sheets

David Ardia

Professor in Quantitative Methods for Finance

What is a financial return?

What is a financial return?

Dollar return (in $):

Final value + Cash flows (i.e. Dividends) - Initial value
Percentage return (in %):

Dollar return / Initial value

What is a financial return?

Dollar return (in $):

Final value + Cash flows (i.e. Dividends) - Initial value
Percentage return (in %):

Dollar return / Initial value

What is a financial return?

Initial value: $\$100$
Final value: $\$110$
Dividend received: $\$2$
- Dollar return: $(\$110 + \$2) - \$100 = \$12$
- Percentage return: $\$12 / \$100 = 0.12 = 12\%$

Return frequency

A series of returns

Returns with Google Sheets

Returns with Google Sheets

Returns with Google Sheets

Percentage returns

Change the format

Result

Function TO_PERCENT()

Use the function TO_PERCENT()

It's time to practice!

Financial Analytics in Google Sheets

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