I have a stock that I purchase 400 shares for 10,485. Five years later it is worth 1,208. The 5 year lost is 9,277 or 88.5%. Quicken reports a annualized return of -35.62%. How is this calculated? I would have thought it would have been a simple calculation of:
((beginning value + earnings -ending value)/(beginning value + earnings))/#years
In the above example, the 5 year annualized return would be -17.7%
So how does quicken come up with -35.62%?