4 ms·

9.5% x 4 = 38% How exactly annualization works?

• bhupy 6y ago
  It presupposes that the quarterly trend will continue at the same rate. In finance, annualizing is a good way to try and extrapolate from the current trend, but in this unprecedented pandemic, the current trend is extraordinarily volatile.
  • pieter_mj 6y ago
    well yes, but as long as there's no vaccine, it remains fairly predictable it seems.
• Fishkins 6y ago
  1-.095 = .905 .905^4 = .671 1-.671 = .329 = 32.9%
  • qertoip 6y ago
    Of course. This was probably my dumbest question in 2020.
    • pieter_mj 6y ago
      Still a long way to go, you might top it. Thanks for the clarification in grandparent comment, i wasn't aware.
  • dkn775 6y ago
    What is the purpose is using the 0.095 figure?
    • hungryhobo 6y ago
      the economy contracted 9.5% -> 0.095
      • atomi 6y ago
        Was this figure from the previous quarter or the same quarter last year?