Row 31734

Row ID: 31734 | Dataset Entry | Axioma AXP Content Repository

Content Data

This page contains data entry 31734 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

you're comparing two different things.

you're comparing an annualized interest rate to a an absolute amount. i.e. You're saying the savings acct is compounding 10%/yr so 100>110>121. This is a 21% total return. not 20% like you are assuming.

In your example citing a 20% total return for apple the growth actually looks like this b/c it's a 9.5% annual return. Which is what you're actually comparing to the 10% annualized rate you used for the savings acct. 100>109.50>120. See the difference?

If you apply this to apple stock and say it compounds at 10%/yr. Then numbers are exactly the same as above.

10%/yr annualized rate of return is not equal to 20% return over 2 yrs. It is equal to 21% total return over two years.

In your example of Apple return 20% total over 2yrs, the annualized return would actually be 9.5% annually.

So your original example is comparing a 10% annualized return on savings to a 9.5% annualized return on Apple. That is why you see a $1 difference on the total return

FieldValue
text you're comparing two different things. you're comparing an annualized interest rate to a an absolute amount. i.e. You're saying the savings acct is compounding 10%/yr so 100>110>121. This is a 21% total return. not 20% like you are assuming. In your example citing a 20% total return for apple the growth actually looks like this b/c it's a 9.5% annual return. Which is what you're actually comparing to the 10% annualized rate you used for the savings acct. 100>109.50>120. See the difference? I…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-21
username_encoded Z0FBQUFBQm5Lak1HT1MzdnlRdTJSMFZMRk9namhrSEFrRE9zS2RzWDY2WllnUkdPRlBDZjRTLUtnYndQbk80SW9xZllYU3NZeU5vMnRRSW96RDlBREtGb05XSEZzdWdDUTM1c2x0elVxZTJmdFMtd0ptQzlHRUE9
url_encoded Z0FBQUFBQm5Lak9Xci1xNGtkeUJELVBGdkhzNlFENi1SMXQ2eEV0Vm45Vi1NUUl1WkhOM2ExSGlQODQ5UFhlRUh3blNFcG1ZWGFoS1AxQ3Fmd195aWptclN2eWVDSFVEQVpTWWdrMGVGcGg4eGxjTm1INUdDaXZTWjBRZzVIMTMzVUl3dlRUc21PNUJ2cXZfOEI1bTVrcWRVSXNVOG1wMEprNDZkdmpYZTJRNkdKeTUwT3p3d0V0UWVXbENxN29hektCamFFOGFaQldpb1picWEwODFzRFV5cXk5RlNWdjhEQT09

Raw Record

{
  "text": "you're comparing two different things.\n\nyou're comparing an annualized interest rate to a an absolute amount. i.e. You're saying the savings acct is compounding 10%/yr so 100>110>121. This is a 21% total return. not 20% like you are assuming.\n\nIn your example citing a 20% total return for apple the growth actually looks like this b/c it's a 9.5% annual return. Which is what you're actually comparing to the 10% annualized rate you used for the savings acct. 100>109.50>120.  See the difference?\n\nIf you apply this to apple stock and say it compounds at 10%/yr.  Then numbers are exactly the same as above.\n\n10%/yr annualized rate of return is not equal to 20% return over 2 yrs. It is equal to 21% total return over two years.\n\nIn your example of Apple return 20% total over 2yrs, the annualized return would actually be 9.5% annually.\n\nSo your original example is comparing a 10% annualized return on savings to a 9.5% annualized return on Apple.  That is why you see a $1 difference on the total return",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-21",
  "username_encoded": "Z0FBQUFBQm5Lak1HT1MzdnlRdTJSMFZMRk9namhrSEFrRE9zS2RzWDY2WllnUkdPRlBDZjRTLUtnYndQbk80SW9xZllYU3NZeU5vMnRRSW96RDlBREtGb05XSEZzdWdDUTM1c2x0elVxZTJmdFMtd0ptQzlHRUE9",
  "url_encoded": "Z0FBQUFBQm5Lak9Xci1xNGtkeUJELVBGdkhzNlFENi1SMXQ2eEV0Vm45Vi1NUUl1WkhOM2ExSGlQODQ5UFhlRUh3blNFcG1ZWGFoS1AxQ3Fmd195aWptclN2eWVDSFVEQVpTWWdrMGVGcGg4eGxjTm1INUdDaXZTWjBRZzVIMTMzVUl3dlRUc21PNUJ2cXZfOEI1bTVrcWRVSXNVOG1wMEprNDZkdmpYZTJRNkdKeTUwT3p3d0V0UWVXbENxN29hektCamFFOGFaQldpb1picWEwODFzRFV5cXk5RlNWdjhEQT09"
}
Explore Dataset Explore Row

Entry Information