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You've got me wondering too.

Posted by: DTravel on Jan 07, 14:35 in response to JDolphin's post Hmmm ... that's an interesting way to do it. I used the...

That is the formula for Annual Percentage Yield modified. The original formula is: (Final return/Initial investment)^(365/days) – 1 You'd then multiply by 100 to turn that into a %. So you're calculating a Daily Percentage Yield. *scratches head* Is that the same as the Daily Return On Investment?

(As an aside, trying to plug the commission in to that could get ugly. Let's see ... (Final Return/((Initial Investment*1.01)+(Final Return*0.01)) Probably not much of a difference but we're being nit-picky about a formula that is just going to get plugged into a spreadsheet anyways. Let the damn computer do the work! )

I don't know. My method made sense to me (obviously), divide the total percentage of change by the number of days basically. I don't know what the reasoning behind the APY formula is. Let's try a very simple example.

Current Price is $10, Adjusted price will be $20 in 100 days. A 100% increase in 100 days, right? By my calculation the dROI would be 1.00%. It averages a 1% increase in price per day. The modified APY forumla says the Daily Percentage Yield is 0.70%. *Light bulb goes off* Ah ha, the APY formula is assuming compounding returns. Hmm, not being sarcastic or insulting, serious question, which is right?

(Another thought, does it matter? The point is to rank different investments. As long as you use the same formula do they end up ranking the same? Damn, being curious can be a real PITA. *wanders off to play with his spreadsheet*)

ZSALD is a very good short at the moment. Aaron123 Jan 06, 17:06

dROI is about 0.75% per day {nm} DTravel Jan 06, 17:23

I calculate it as 1.28% - but if you'd bought it in Sept at last adjust it is 1.78%, - $100 drop - I was taking a chance one would report {nm} JDolphin Jan 06, 22:56

Math inside DTravel Jan 06, 23:58

Hmmm ... that's an interesting way to do it. I used the DROI formula posted on this forum (inside) JDolphin Jan 07, 01:59

Don't read too much into DROI. It's only an average. For arguments sake, lets say a $120 stock is a sure thing to drop $50 in 50 days... osmosis2003 Jan 07, 02:22

You've got me wondering too. DTravel Jan 07, 14:35

Wow - you sound just like me (at least in my head) :) - goes off to play with my spreadsheet :) {nm} JDolphin Jan 07, 17:53

After thinking about it DTravel Jan 09, 13:27

Neither have been release or reported box office so far from guarantee {nm} Antibody Jan 07, 10:18

But unless you're a HPOT or TWIL actor, the chances of 2 - $250 movies back to back are very slim so I'll go with the downside {nm} JDolphin Jan 07, 13:25

That has nothing to do with whether a indie distributor will report to ERC or not. {nm} Antibody Jan 07, 15:01