calculate returns

[tarox]

dear all ,,

i have Net Asset Value (NAV) of 62 funds + data for index,,, how could i calculate the returns for them some previews studies used two formula

formula one

R=( NAV (for fund at month 2) - NAV (for data at month 1) +D (for fund at month 2))/ NAV (for data at month 1)

D = refer to Divident or cash disbursement for funds

formula two

R =LN ((NAV (for fund at month 2)/NAV (for data at month 1))


my question is which formula should i use ,,,depend on what should i make the Decision

thank you

[nishantvats12]

HI,

You can use the second formula if you are sure that the NAV you are using has been adjusted for dividends.

[tarox]

thank you nishantvats12