For a savings account that is returning 2.0 APR, on $10,000, $200 in interest will be earned in one year.
If I have a return of 9% on a stock trade with a holding period of 3 months, is the annualized return 4 x 9% = 36%?
Doesn't that assume I will make 9% on three additional trades? What if those three trades are all negative? Now the annualized return isn't even 9% anymore.
If the above is incorrect, what is considered the annualized return on the stock trade?