>A maths / finance question; If I know an investment returned 250%, for example, over 5 years how do I calculate the annualized return over those 5 years? In Excel the formula is (I've been told) XIRR() but what is the algorithm?
( 2.5 ) ^ ( 1 / 5 ) = 1.20, or about 20% PA compounded annually
Regards. Al
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