If we buy a stock that goes 10% up in one day and -3% in the next. Total will be calculated as:
( 1 + .10) x ( 1 - 0.3) - 1 = 1.1 x 0.97 - 1 = 6.70%
1 + R format
How to compare Annualise returns
If 1% return over month. Total return would be annualised ?
(pow((1 + 0.01), 12) -1) = 12.68%