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by getToTheChopin
1254 days ago
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The arithmetic mean gives you a sense of the return you can expect by investing in the market for a single year. When investing over multi-year periods, the geometric average is more relevant. You can see the impact on this chart, where the average return (and volatility) drops over longer time periods: https://themeasureofaplan.com/wp-content/uploads/2023/01/Rol... |
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