Does the chart take into account the fact that returns compound over time? How w... | Hacker News

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		kevinburke on Jan 4, 2011 \| parent \| context \| favorite \| on: Visualization of stock market performance over tim... Does the chart take into account the fact that returns compound over time? How were the values calculated?

palewery on Jan 4, 2011 [–]

Returns on stocks do not compound. If you bought a stock at X and sold it at Y your gain/loss percentage is simply Y/X. There is no reason to use the Pert formula.

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