I do not understand how the returns are calculated

Good morning everyone

I can not understand how they are calculated returns in this part of the code. r4 is the total return vector

series = prices

title(['Final Return = ',num2str(sum(r4),3),' (',num2str(sum(r4)/mean(series2(1,:))*100,3),'%)'])

specifically I do not understand what is the percentage

(',num2str(sum(r4)/mean(series2(1,:))*100,3),'%)'])

thank you so much for your time and cooperation

regards

Answer 1

[Guillaume]

A much clearer way of writing the exact same code would have been to use sprintf:

title(sprintf('Final Return = %.3f (%.3f%%)', sum(r4), sum(r4)/mean(series2(1, :))*100));

Each %.3f in the sprintf is replaced by the numbers that follow the string, in order. To write a % sign in the string, you need to escape it, hence the %%.

It basically writes a title like: 'Final Return = 12.200 (15.750%)' assuming a sum of 12.2 and sum/mean of .1575.

[alessandro caserta]

thank you very much for your quick response. I still have a little doubt. I do not understand what is your 15.750%, in the sense return / average price what expresses? thanks again regards

[Guillaume]

Well it's the sum of r4 expressed as a percentage of the average (mean) of the first column of series2. Whether or not it means anything, only you can tell.