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The Bible: Song of Solomon 3102 Views
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Description:
A word to the wise: if you write your crush a love poem, try not to compare them to barnyard animals. Goats may have worked for Solomon, but times have changed.
Transcript
- 00:00
Finance, a la shmoop. What is an annualized return? Alright people, well
- 00:08
when you invest a dollar you hope or even expect to get more than a dollar [ATM machine]
- 00:13
back, at some point. And let's say you invested that dollar in Terminators
- 00:18
Closet -a leading dealer in cybernetic body enhancements. And it went from $1 a
- 00:23
share to a dollar ten six months later. Alright, nice return.
Full Transcript
- 00:27
You made 10% in just six months but in most investing discussions ,investment [spreadsheet shown]
- 00:32
returns are discussed in the form of annual returns, not monthly or daily or
- 00:38
biannual numbers, so you need to convert your six-month return into an annualized [angelic glow]
- 00:45
one, and you can do the process here of computing that number that is if you made
- 00:50
10% in six months well then in a year presumably you could notion that you'd
- 00:55
have made 20%. It's not that you would have guaranteedly made 20% it's just [spreadsheet shown]
- 01:00
the math saying that well if you had compounded at that rate then you'd have
- 01:04
made 20%, so what if she made 10% in a month? Well the stock went from a buck a
- 01:08
share Jan 1 to a buck ten a share by Feb 1 .Well if you impute so that you can [calendar shown]
- 01:15
compute that month's gain of 10% would carry a compound rate of a hundred
- 01:20
twenty percent. Right ? You're multiplying 12 months times 10 there, that'd be
- 01:23
annualizing it meaning, that at that rate you are more than doubling your money on [spreadsheet shown]
- 01:27
an annualized return basis. And that's more than enough dough to keep
- 01:31
terminators closet popping out those Wi-Fi enabled contact lenses faster than [woman watches TV]
- 01:36
people can wear them.
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