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7% is the usual figure quoted for annualized stock market returns, so I guess that’s what they mean: xyz% annualized.
by pedrosorio 7y ago
7% is the usual figure quoted for annualized stock market returns, so I guess that’s what they mean: xyz% annualized.
- nothrabannosir 7y agoParent was referring to the “hundreds” part, not the 7. If 5% of your bets win, but only pay off in the hundreds %, you’re going bankrupt. You need at least 2000% return, amortised over the winners, to break even. More to beat that 7%.
- vidarh 7y agoYes, but the point being that 7% is an annualized number; if the hundreds of percent is also referring to annualized returns, then it makes sense.