LogFAQs > #934287077

Ive been doing some stock growth rates and something doesnt make sense to me. I feel Im doing the math right but the logic feels flawed in my head. Lets do a simple hypothetical.

Lets say you invest $100. You average growth per stock day is 0.5%. (To make things simple, just use the $100 to calculate the 0.5% growth for every stock day even though this will be less money overall because you should add each days growth to the $100 then re-calculate)

OK, the average amount of stock days per year is 252 so we will use that number. Based on my math, if I make 0.5% on $100 for 252 days I end up with a total of $126 in profit. So I would have a total of $226. That means that is 126% increase year over year.

That feels REALLY HIGH for averaging 0.5% per day. Especially since its flawed and lower than what it would actually be because Im not taking that 0.5% growth and adding it to that $100 each day. Is this math correct? Im having a hard time believing that if someone averages 0.5% growth over a year they will be up 126%

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Yes... I'm a Hanzo main