2 ms·

I don't see how that relates to the article?

• tiffanyh 4y ago
  The graphs are about long term returns. And how are those returns calculated? Because if they used arthritic mean, it’s overstating the actual annualized return.
  • Galanwe 4y ago
    Two things to note here. First, it does not "overstate" the annualized returns. It just brings a particular view of them, which is the "expected annual return" vs the "compoundable annual return". Both are perfectly equivalent and represent different ways to look at annual returns. I would expect most practitioners to expect the former. Second, this debate is completely irrevant here, as all charts show cumulative returns based on a $1 investment.