<p>Usually when people talk about annual returns they mean 1 number per year. If you were asked to calculate portion of the annual return for the daily return, whoever asked you should have said you should calculate annualized daily return.</p>

CC BY-SA 4.0
2024-04-03T10:04:47.223Z
Thanks for the answer. So I should calculate 2 values (1 for each year), but is it better to do this using the 502 daily returns or using the 503 daily values of the stock (I forgot to precise that I have this data)
manux
CC BY-SA 4.0
2024-04-03T10:09:27.123Z
Stock return is $(p_{t+1} - p_t +d)/p_t$ where $p$ is stock price and $d$ dividend (if there is any), if you want a return for a year for a daily data you can use $(p_{365} - p_1 +d)/p_1$. People often do average yearly returns, where you just average all returns throughout the year, but that wasn't in your question.
csilvia
CC BY-SA 4.0
2024-04-03T09:57:32.667Z
2024-04-03T09:57:32.667Z
csilvia
<p>I got a task but i'm not even sure to understand what is the goal ;
I have a serie of 503 daily returns (= 2 trading years) for a stock index, and I have to  calculate the annual returns. I dont know if I have to get 1 value (resuming the 2 trading years) or 2 values (1 value per trading year) ou 503 values (1 value per day).</p>
<p>Could someone help me ?</p>
<p>Thanks in advance</p>

<price-index>
Daily and annual returns
manux
# Daily and annual returns

(Asked by: username_0 on 2024-04-03)

I got a task but i'm not even sure to understand what is the goal ;
I have a serie of 503 daily returns (= 2 trading years) for a stock index, and I have to calculate the annual returns. I dont know if I have to get 1 value (resuming the 2 trading years) or 2 values (1 value per trading year) ou 503 values (1 value per day).

Could someone help me ?

Thanks in advance

**Tags:** price-index


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## 1 answers

### Answer by username_1 on 2024-04-03. Score: 0

Usually when people talk about annual returns they mean 1 number per year. If you were asked to calculate portion of the annual return for the daily return, whoever asked you should have said you should calculate annualized daily return.

> **Comments:**
> **username_0**: Thanks for the answer. So I should calculate 2 values (1 for each year), but is it better to do this using the 502 daily returns or using the 503 daily values of the stock (I forgot to precise that I have this data)  
> **username_1**: Stock return is $(p_{t+1} - p_t +d)/p_t$ where $p$ is stock price and $d$ dividend (if there is any), if you want a return for a year for a daily data you can use $(p_{365} - p_1 +d)/p_1$. People often do average yearly returns, where you just average all returns throughout the year, but that wasn't in your question.  

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