Many advisers seldom — if ever — take the time to determine the return of investments on their own. Often, they will rely on third-party calculations for the average annualized performance of funds and stocks.
That isn’t necessarily a problem, because high-quality data providers always use the geometric mean when showing “average annualized returns.” The problem may arise when you are called upon to calculate an average return of an investment over a multi-year period.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access