TMFPixy gave you a good formula to use.Since your a math major :)A linear model is good enough for short periods.You can ignore second order effects.In other words: compound interest takes time tomake a difference. As long as your ROR over the 6 months isless than 25% (56% annualized return)the error of a linear model is less than 1%.(i.e. the linear model gives a ROR of 24%)If your ROR is greater (you lucky dog) buya financial calculator, you can afford it! A much bigger source of error over a shortperiod is when you made the contribution.It can make a big difference if you made the first contribution at the start of the 6 monthperiod or 2 weeks later.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra