topic Re: How to calculate a price series from annual returns in SAS Programming

How to calculate a price series from annual returns

Birgithj — Thu, 07 Nov 2019 16:01:42 GMT

Hi,

I have dataseries containing annual percentage growth, and from this I would like to create a new column showing corresponding price development (assuming a price of 100 in year 0). An example can be seen below.

Year	Annual return	Stock price development
1	7,00%	107,0
2	6,00%	113,4
3	2,00%	115,7
4	1,00%	116,8
5	2,00%	119,2
6	4,00%	123,9
7	5,00%	130,1

I have used the following code, but I am not able to successfully do the calculation.

data want;
set have;
if first.return then Price=100;
Price*(1+return);
run;

Can someone please help me?

Re: How to calculate a price series from annual returns

PaigeMiller — Thu, 07 Nov 2019 16:16:35 GMT

data have;
    input year return;
	if _n_=1 then price=100;
	price+price*(return/100);
	cards;
	1 7
	2 6
	3 2
	4 1
	;
run;

Re: How to calculate a price series from annual returns

Birgithj — Thu, 07 Nov 2019 16:48:16 GMT

Thank you so much. Once again you have saved my day!