Money Myth #6: Average Rate of Return Equals Actual Rate of Return

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Is the average rate of return of an investment the same as the actual rate of return? Unless the investment has a fixed rate of return (for example, earning 5% each and every year), they are NOT the same! Sometimes, they are very different. This sleight of hand is one reason that investor returns are often quite different from investor expectations. Kim Butler of the Prosperity Economics Movement explains in this Money Myth video:

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