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Subject:  Re: Ot Variance drag Date:  3/27/2019  7:08 AM
Author:  DrBob2 Number:  273754 of 275676

What does this mean? It means that the more volatile your returns, the lower your returns. A simple example will show this. You have 1.00. It goes up 50% the first year and down 50% the next year (or vice versa). What do you end up with. 75 cents.

True, although it applies when compounding. If you have a constant position size then the regular average will work.

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