Use annual return to compare investments over different time frames. Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using ...

Total returns and total costs should be considered to calculate ROI with the highest degree of accuracy. Annualized ROI should be considered for a comparison between competing investments ...

However, in the real world, investors won't always have the time or patience to wait years to calculate potential returns and volatility. That's where the idea of annualized volatility comes in.

Using the IRR function, you can easily calculate the internal rate of return based on a series of cash flows. The result provides an annual rate of return, which can be compared with the required ...