Exercise

# Comparing annualized rates of return

In the last exercise, you saw that the annualized rate of return was **19.6%**. That's pretty high! But since your portfolio consists of only 4 stocks, this high return is indeed possible as it is not very diversified. Let's compare the portfolio's annual rate of return, with that of the S&P500, which is much more diversified.

The **value** of the S&P500 between *1st of January 2015* and *end of December 2018* has been made available. That's **4 years** of data. You have full years this time, so use the year denomination in the formula for the annualized return. The data is stored under `sp500_value`

.

Instructions

**100 XP**

- Calculate the total return over the four years from the first and the last observation in
`sp500_value`

. - Calculate the annualized return from the
`total_return`

over four years.