How do you calculate the say a 10-year annualized return of FTSE TMX Canada High Yield Bond Index. Please dumb it down as to the process.


For price return you just look at the ending price relative to the beginning price. The formula is

R = ((endPrice/begPrice - 1) ^ (1/n)) - 1

This is the inverse of the growth function

end = beg * (1+r)^n

For total return (meaning how much will I earn if I reinvest dividends and capital gains), just all all distributions to endPrice.

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