UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: JeffLandon One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 252680  
Subject: Re: CAGR/GSD Limits of Blends Date: 11/16/2007 2:27 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 4
"1. The blend CAGR cannot be as large as the largest component CAGR nor
can it be less than the smallest CAGR component of the blend."

How tragic.

Your very first assertion, and yet I fail to agree.

In theory, a blend could exceed the CAGR of all its constituents. Not
saying I've seen it, but please be more careful in what you assert.

Period  Screen 1  Screen 2  Blend
1       20%        0%        10%
2        0%       20%        10%

See?

In cagr, a geometric value, smoothness of returns is what wins.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Berkshire Hathaway

Burger King's Play Not For Taxes?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement