# Cumulative & Annualized Returns

The cumulative return of an investment is the aggregate return that an investment has gained or lost over time (it can be both positive or negative). If you have Open-High-Low-Close stock data, you can compute cumulative returns on its adjusted price as dividends, and stock splits will lead to incorrect results. \[R_c = \frac{P_c}{P_i} - 1\] where \(R_c\) is the cumulative return, \(P_c\) is the current price, and \(P_i\) is the initial price. …