Say I'm looking at the monthly investment returns of 3 funds:
Date Index 1 Index 2 Index 3
7/1/2012 0.19% 1.10% 0.26%
8/1/2012 -0.13% 0.22% 0.13%
9/1/2012 -0.11% -0.12% 0.27%
10/1/2012 -0.25% -1.31% 0.13%
11/1/2012 0.70% 1.66% 0.63%
12/1/2012 1.09% 1.07% 1.76%
1/1/2013 0.04% -0.82% -0.32%
2/1/2013 1.83% 1.41% 0.83%
3/1/2013 0.63% 0.24% 0.47%
4/1/2013 0.45% 0.49% 0.74%
5/1/2013 -0.10% 0.65% -0.53%
6/1/2013 -0.83% -0.86% -0.54%
7/1/2013 1.38% 1.53% 2.06%
8/1/2013 -0.33% -0.05% 0.05%
9/1/2013 0.27% -0.14% 0.97%
10/1/2013 -0.63% -0.35% 0.14%
11/1/2013 -0.14% -0.75% -0.74%
12/1/2013 -0.75% -0.10% -0.38%
1/1/2014 1.06% 0.33% 8.72%
2/1/2014 0.04% 0.91% -0.65%
I've put 50% in Index 1, 25% in Index 2 and 25% in Index 3. This is my portfolio. For this portfolio, I want to find the annualized return and the annualized standard deviation for the entire 3 year period here. I'm confused about how exactly to do this.
Do I annualize the returns individually, then take the average of the individual annualized returns, and then use the weighted average to find the portfolio's annualized return? Or is there another way?
Here is an example of what I am trying to implement:
https://docs.google.com/spreadsheets/d/1RT7kJvlO3-rvmSzSUYXgOjS1jabddzAB5l5kKa07d7s/edit?usp=sharing
How do I find the annualized standard deviation for the entire portfolio?
Is there a way to see the best 12 month return for the historical data?