I know that it's not good to annualize returns for less than one year but wanted to know how to annualize monthly returns from February 28, 2017 to October 31, 2017. Only the February return is not a monthly return as it's a return from February 24 to February 28.

To annualize, is it the PRODUCT function of the nine monthly returns, then taking the exponent of (365/number of days in the period) in Excel?

(1+x)^[365/(days between February 24 and October 31)]-1 =(1+x)^(365/250)-1

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  • 1
    returns of what? do you have a beginning value, ending value, and days elapsed? If so, don't bother with monthly numbers. – JoeTaxpayer Nov 7 '17 at 14:31

Yes, if you know the total return r between 2/24 and 10/31 (which is 249 calendar days in non-leap-years), to annualize that return you'd calculate


If you have returns for separate periods, then yes, you'd multiply them to get the total return r for that period.

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