Hi Bob,

Look in HELP for the NOMINAL() and EFFECT() functions

Thu, 6 Dec 2007 01:55:37 -0500 from Robert E. Leonard Sr
<rleonard@mich.com>:

Initial value in A1
Final value in A2
Number of years in A3

The growth is A2/A1

The growth per year is (A2/A1)^(1/A3)

The percent increase per year (compound annual return) is
=(A2/A1)^(1/A3)-1
formatted as a percent.

I don't understand.  You seem to be misusing the terminology.  A
stock's "annual return" is the same as its "compounded annualized
return".  They are different only when the time period is different.

For example, if the stock price grew 22% over 4 years, we might
compute the annual return by either of the following formulas:

=rate(4, 0, -1, 1+22%)

=(1+22%)^(1/4) - 1

Note:  You might need to set the Format to Percentage manually.

But if your estimate of 15-16% is close, that would suggest that you
have held the stock for only 16-17 months.  That high end can be
estimated by:

=12*nper(15%, 0, -1, 1+22%)

Replace 15% with 16% to estimate the low end.

On the other hand, perhaps you mean that 22% is the "nominal" return
based on, for example, a monthly return of about 1.83% (22%/12).

In that case, the compounded monthly return can be annualized by
either of the following formulas:

=fv(22%/12, 12, 0, -1) - 1

=(1 + 22%/12)^12 - 1

Note:  Again, you might need to set the Format to Percentage manually.

But that results in an annualized rate of more than 24%, not 15-16%.
Since somehow you estimated a smaller annualized rate, it would seem
that this is not the case you are asking about.