Why might long term compound returns be better than average annual returns?
Why might long term compound returns be better than average annual returns?
Homework Answers
Because one earns interest on interest so one needs to take into account long term compound returns. Average returns does not give realised returns and does not consider compound interest.
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Why might long term compound returns be better than average
annual returns?
Suppose the returns on long-term corporate bonds are normally distributed. The average annual return for long-term...
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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2015 Long-Term Treasury B onds 6.6% .0 1.6 5.7 13.5 Stocks 12.6% 9 28. 8.7 7.5 18.2 19.0 0.9 15.1 2.1 16. 32.4 13.7 1.4 1950 to 2015 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1980 to 1989 Average 1990 to 1999 Average 2009 to 2009 Average 2010 Annual Return 2011 Annual Return 2012 Annual Return al Return 2013 Annual Return 2014 Annual...
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Rather than investing in productive long-term assets, reducing outstanding long-term debt, or increasing salaries and benefits...
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Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2017 Long-Term Treasury Bonds 6.6% 0.0 1.6 1950 to 2017 Average 1950 to 1959 Average 1960 to 1969 Average 1970 to 1979 Average 1980 to 1989 Average 1990 to 1999 Average 2000 to 2009 Average Annual Return 2011 Annual Return 2012 Annual Return 2013 Annual Return 2014 Annual Return 2015 Annual Return 2016 Annual Return 2017 Annual Return 2010 to 2017 Average Stocks 12.7% 20.9 8.7 7.5 18.2 19.0...
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Why might person earning $50,000 in annual income today [measured in 2011 Canadian dollars] be better off than a person earning $1,000,000 in annual income [measured in 2011 Canadian dollars] 100 years ago?
The Long-Term elasticity of gasoline is higher than the Short-Term elasticity of gasoline. Why is this the case?
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