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All Rates of Return are Not Created Equal

Did you know that Rate of Return can be calculated in different ways? There’s time-weighted return and dollar-weighted return, and while both are considered valid methods they each have different applications.

Check out this post by Fidelity Investments Canada – Understanding your Investment Return to find out more.

So before you compare your portfolio’s Rate of Return to information that’s published online or in an Index, make sure you know how it’s calculated so that you’re comparing apples to apples….and not some other fruit.

Tags: Investing

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