What Does Annualized Rate Of Return Mean In Investing World?

This term is touching a little bit on the last term we talk about which of course is “Annualized”. This term is also called for “compound growth rate” by some many people in the investing world.

The whole meaning of the term ”Annualized rate of return” in the investing world is basically the average annual return over a period of years, which are taking into account the effect of compounding.

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