ANNUALIZED Meaning and
Definition
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"Annualized" is an adjective that refers to the process of taking a rate or value from a shorter period of time and extending it to cover a full year. It is a term commonly used in finance, investing, and business to calculate or express metrics on an annual basis.
This concept allows for a more accurate representation of performance, growth, or returns over a year, especially when dealing with data that is available for shorter periods. By annualizing the rate or value, it enables easier comparison across different time frames and provides a standardized measure of performance.
The annualized calculation takes the available rate or value for the shorter period and multiplies it by a factor to project what the rate or value would be over a full year. This factor is typically calculated by dividing 12 (number of months in a year) by the number of months in the shorter period.
For example, if a mutual fund gained 2% in a single month, the annualized return would be calculated by multiplying this by 12 (months) to obtain an annualized return of 24%. This allows investors to better understand the performance of the fund over a year and make informed decisions.
Overall, the term "annualized" provides a framework for interpreting data from shorter time periods in the context of a full year, facilitating comparisons and analysis in various fields, especially finance and business.
Top Common Misspellings for ANNUALIZED *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for ANNUALIZED
Etymology of ANNUALIZED
The word "annualized" is formed by adding the suffix "-ize" to the word "annual".
The term "annual" originated from the Latin word "annuālis", which means "yearly" or "pertaining to a year". It can be traced back to the Latin word "annus", meaning "year".
The suffix "-ize" is derived from the Greek suffix "-izo", which is used to form verbs from nouns, resulting in the meaning "to make" or "to cause".
Therefore, "annualized" is formed by combining "annual" with "-ize", to create a verb meaning "to convert or adjust something to an annual basis". In financial contexts, it is often used to describe a rate or figure that is adjusted or expressed for a year.
Similar spelling words for ANNUALIZED
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