balances {stocks}R Documentation

Calculate Balances Based on Initial Balance and Vector of Ratios

Description

Calculates vector of balances based on initial balance and vector of ratios from one time point to the next (i.e. proportion gains + 1). The formula is simply: initial * cumprod(ratios).

Usage

balances(ratios, initial = 10000)

Arguments

ratios

Numeric vector of ratios between subsequent investment prices (i.e. proportion gains + 1). For example, if a stock gained 3%, lost 1%, then lost 2%, ratios would be c(1.03, 0.99, 0.98).

initial

Initial balance.

Value

Numeric vector indicating balance at each time point.

Author(s)

Dane R. Van Domelen

References

Acknowledgment: This material is based upon work supported by the National Science Foundation Graduate Research Fellowship under Grant No. DGE-0940903.

See Also

final.balance

Examples

# Randomly generate daily stock gains over a 5-year period
set.seed(123)
stockgains <- rnorm(252 * 5, 1.0003, 0.02)

# Create vector of balances if initial balance is $10,000
bals <- balances(stockgains)

# Plot results
plot(bals)

[Package stocks version 1.1.2 Index]