The Russian stock exchange is known as the RTS, which was first indexed on September 1, 1995 with a value of 100. As of February 27, 2007, the index value is 1,906.08. Looking at the RTS website (http://www.rts.ru/en/), I found out that the index is calculated based on the 50 most liquid and largest cap stocks picked by the RTS Committee. Below is a graph of the RTS index since its start in 1995.
February 28, 2007 at 1:12 am |
Can you calculate the average annual rate of return on the RTS? In a pinch you could do it by using natural logs.
February 28, 2007 at 2:02 am |
The way I calculated the annual rate of return was by using the formula that equates present value to future value. That is, PV = FV/(1+r)^n, where PV = 100; FV = 1906.08; n = 11. Therefore, r = 30.73%.