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Average return (CAGR — Compound Annual Growth Rate) is the constant annual growth rate that would produce the same result as actual investment growth over a period. Unlike simple average return, CAGR accounts for compounding and gives a more meaningful comparison.

Guía paso a paso

1. 1CAGR = (End Value / Start Value)^(1/Years) − 1
2. 2Total return = (End − Start) / Start × 100%
3. 3Simple average of annual returns can be misleading with volatility
4. 4CAGR is always lower than or equal to the arithmetic mean of annual returns

Ejemplos resueltos