Posted by Ben on December 17, 1999 at 08:06:09:
I am no cash flow expert but I think I can handle this. Assume you held this for a year instead of four months you would have made $12,000 (simple interest without compounding etc). 12,000 divided by 11,000 is 1.09. Actually these questions are better suited for the cash flow forum but while we are on the topic, I have always found this annualized ROI to be very misleading. In other words, if I invest a dollar today and get back two dollars tomorrow, my annualized yield is 365% right which sounds great except I have still made a dollar, big deal! How does one calculate a return that is more accurate?