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feat: add compounded flag to rar() for non-compounded returns #511

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feat: add compounded flag to rar() for non-compounded returns #511

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fc4270f
feat: add compounded flag to rar() for non-compounded returns
austinchennn Mar 20, 2026
c4de649
docs: update docstring for compounded parameter in rar()
austinchennn Mar 20, 2026
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3 changes: 2 additions & 1 deletion quantstats/stats.py
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Expand Up @@ -1569,6 +1569,7 @@ def rar(returns, rf=0.0):
Args:
returns (pd.Series): Return series to analyze
rf (float): Risk-free rate (annualized, default: 0.0)
compounded (bool): Whether to compound returns for CAGR calculation (default: True)

Returns:
float: Risk-adjusted return
Expand All @@ -1582,7 +1583,7 @@ def rar(returns, rf=0.0):
returns = _utils._prepare_returns(returns, rf)

# Calculate CAGR and divide by exposure time
return cagr(returns) / exposure(returns)
return cagr(returns, compounded=compounded) / exposure(returns)


def skew(returns, prepare_returns=True):
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