I have a task: to download daily stock quotations, create a portfolio and draw a CML-line. Risk-free rate was given: 6.5% of annual.
I decided to convert daily returns to annual returns, using formula from [here][1]:
$$AnnualReturn = [(DailyReturn + 1)^{365} - 1]*100\%$$
I found out, that result numbers are just insane. For example, for one company price 2017/09/07 was 27.025 , price 2017/09/08 was 27.77. Then
$$ DailyReturn = \frac{27.77-27.025}{27.025} = 0.0276$$
$$AnnualReturn = [(1.0276)^{365} - 1]*100\%=2069063\%$$
I suppose I did something wrong. Could you help me, please?
And there is one more question: can I convert a daily return to annual return like this?
$$AnnualReturn = DailyReturn*365$$




  [1]: https://www.fool.com/knowledge-center/how-to-convert-daily-returns-to-annual-returns.aspx