401K APRs are 6.8%, 11.8%, and 13.2%

    401K system correction

    Posted by mc40 on 5th of Mar 2014 at 11:42 am

    B&H 6.8%

    Long only 11.8%

    Lg&Sh 13.2%

    401K system almost doubles return w with Long and Short,

    With long only and interest gain is about 73% over B&H.

    Math below

    Paint Dry Annual Percentage Rates

     

     

     
    Years gain factor    
      GF      
    2013 28 buy and hold  
    1962 292 Long only with interest for being ion cash
    51 555 with shorting  
      example Buy Hold Long only Long Short
      ln(2) ln(28) ln(292) ln(555)
    ln(GF) 0.693147 3.3322045 5.6767538 6.3189681
    years 2 51 51 51
    ln(GF)/yr 0.346574 0.0653373 0.1113089 0.1239013
    exp(ln/yr) 1.414214 1.0675191 1.1177401 1.1319042
      -1 -1 -1 -1
      0.414214 0.0675191 0.1177401 0.1319042
    Annual   41.4% 6.8% 11.8% 13.2%
    Percentage      
    Rate    

     

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