tech.nmfin.returns

Interface ReturnsCalculator

All Known Implementing Classes:

ReturnsCalculators

public interface ReturnsCalculator

This interface defines how return is computed from two values of a portfolio.

Keep conventions consistent

Implementations determine whether a return is an absolute change, a fractional simple return, or a logarithmic return. Use the same implementation for calculating a return and reconstructing a price; computePrice cannot infer a return's convention.

See Also:

ReturnsCalculators

Method Summary

Modifier and Type	Method and Description
double	computePrice(double px0, double r) Computes the next price after a return.
double	computeReturn(double p0, double p1) Computes the portfolio return.

Method Detail

computeReturn

double computeReturn(double p0,
                     double p1)

Computes the portfolio return.

Parameters:

p0 - the beginning value of the portfolio

p1 - the ending value of the portfolio

Returns:

the return value

computePrice

double computePrice(double px0,
                    double r)

Computes the next price after a return.

Parameters:

px0 - the original price

r - the return

Returns:

the new price