Guide to the Markets

How to Use a Historical Returns Triangle

For example, to find the annualized compound rate of return for the S&P 500 Index for the interval 1998-2007:

1

Locate the column for the first year of the interval (1998).

Years are labeled at the top and bottom of each column.

2

Locate the column the row for the last year of the interval (2007).

Years are labled at the beginning of each row.

3

The return can be found where the first year's column meets the last year's row.

In this example, the S&P 500 Index had a compound rate of return of __% per year for the ten-year period.

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GovBond_B3.PNG

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