R-code: Why is the expected return infinity?

Question

The purpose of the R-code is to read MSFT historical prices from Yahoo, and calculate its return for daily open prices.

#load packages
library(quantmod)
library(PerformanceAnalytics)

getSymbols("MSFT") #read data

#Call function to analyze open price
table.AnnualizedReturns(MSFT[,1]) #End of the code

The result always shows its return is infinity as follows:

                          MSFT.Open
Annualized Return               Inf
Annualized Std Dev         136.4471
Annualized Sharpe (Rf=0%)       Inf

I appreciate if one can help me identify the mistake causing infinity.

Answer 1

I think you need to convert prices to returns first to use table.AnnulizedReturns

#load packages
library(quantmod)
library(PerformanceAnalytics)

getSymbols("MSFT") #read data

#Call function to analyze open price

r <- Return.calculate(MSFT[,1]) #Returns

table.AnnualizedReturns(na.omit(r)) #End of the code

                          MSFT.Open
Annualized Return            0.0683
Annualized Std Dev           0.2735
Annualized Sharpe (Rf=0%)    0.2498