2006-07-30 00:30:44 · 3 answers · asked by itsme 1 in Business & Finance ➔ Investing
10% increase in two years amounts to 4.88% average per year, not including dividends.
That is because 1.0488 squared equals to 1.1.
For small percentage and number of years just dividing by the number of years is good enough, i.e. 5% per year increase is only slightly larger than 10%.
2006-07-31 21:18:02 · answer #1 · answered by cordefr 7 · 0⤊ 0⤋
I don't believe that your question can be answered with the information that you have provided. When you say absolute increase I assume that you mean the total return of the mutual fund. The total return is comprised of the increase in NAV along with the any dividends that may have been received. Since you did not factor in dividends into the scenario, the complete story can't be derived. Good luck.
2006-07-30 02:23:42 · answer #2 · answered by Gator714 3 · 0⤊ 0⤋
With due apology, I wished that you should have given more details and purpose (of comparison).
Arithmetically the yield is 4.88% with annual compounding.
Usually we work out not absolute increase but annualised return(which takes into factor dividend etc.) and compare with nav of similar funds and sensex/nifty.
Anyhow
best of luck.
2006-08-02 23:21:50 · answer #3 · answered by PK LAMBA 6 · 0⤊ 0⤋