If I have an annualized 5% return on $2,000, which is $100, can I always say that each 1% is $20?
If that is the case, then this linear division of an annualized returns can be applied to more complex scenarios. For example, you buy an option requiring $500 and hold it for 60 days, netting $30. That's 6% on the holding period and 36% (12/2 x .06) annualized. Each annualized 6% in that case is $5 right?