1

The following monthly returns:

56.12%
15.00%
-2.27

equal 75.46% for the quarter.

What is the calculation to get 75.46%?

5

The calculation is product.

Given monthly returns X%, Y%, Z%, quarterly return Q% is calculated as:

Q% = ((1 + X%/100) * (1 + Y%/100) * (1 + Z%/100) - 1) * 100%

Using the numbers from the question:

Q% = ((1 + 56.12/100) * (1 + 15.00/100) * (1 - 2.27/100) - 1) * 100% =

= (1.5612 * 1.15 * 0.9773 - 1) * 100% = 75.46%

  • Is the last product of 100% needed since it is just multiplying by 1? – 4thSpace May 5 at 14:46
  • @4thSpace All those /100 and *100 are unnecessary. They're there just to make unit conversion explicit. 50% already equals 0.5 without them. – void_ptr May 5 at 15:16

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