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Hot Topic Hawke’s Bay
Hot Topic Hawke’s Bay
Margin Call
13 mins to read

Paradoxes and pitfalls of measuring average returns

ANALYSIS: Investigating the difference between arithmetic average returns and geometric average returns finds some mathematical trickery and also an element of truth.

Perhaps we should measure the average return from the MSCI World Index in terms of bitcoin?

Over the past six calendar years, the arithmetic average annual return from bitcoin has been 78.9% when measured in US dollars.

Over the same six-year period, the arithmetic average annual return from the MSCI World Index (an index measuring the returns from developed market global equities) has

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Nicholas Bagnall Tue, 16 Jan 2024
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Paradoxes and pitfalls of measuring average returns
Margin Call,
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