Real-World Scenarios Where CAGR Can Be Misleading
The Compound Growth Rate Calculator is one of the most used tools for assessing long-term investment performance. It gives a neat, averaged-out annual growth rate, helping investors quickly understand how their portfolio or a listed IPO has performed over a set period. However, as useful as CAGR is, it can also be misleading in certain real-world scenarios if not interpreted correctly. Let’s explore where CAGR might give a skewed picture
