Calculating investment returns using "PRODUCT" function?

[mrbounce99]

Hi, I'm getting 2 slightly different answers with my returns, why????

Initial investment (say) $2,000,000

% monthly returns(1-4): 0.65%, -0.6%, 0.87%, -9.36%.

If I use the "PRODUCT" function to obtain an answer to my overall monthly returns its -8.53%

Actual monthly returns (1-4): $12,990, -$12,028, $17,482, -$187,292

If I total the monthly returns -$168,848 and calculate this as a % of my initial investment ($2m) I get -8.44%

My question is, why is this -8.44%, different to -8.53%?
Thank you

 

[shg]

I get 8.442% both ways:

       --A-- -----B----- ---C--- D -------------E-------------
   1   Month   Amount                                         
   2       0  2,000,000                                       
   3       1  2,012,990   0.649%   C3 and down: =B3/B2-1      
   4       2  2,000,962  -0.598%                              
   5       3  2,018,444   0.874%                              
   6       4  1,831,152  -9.279%                              
   7                                                          
   8                     -8.442%   C8: {=PRODUCT(1+C3:C6) - 1}
   9           (168,848)           B9: =B6-B2                 
  10                     -8.442%   C10: =B9/B2

 

[mrbounce99]

Thank you for your reply, much appreciated.

 

[shg]

You're welcome. Sorry about that April.