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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: sea_biscuit who wrote (2001)11/5/1997 1:15:00 PM
From: Investor2  Read Replies (1) of 42834
 
RE: "Most investers thought the question meant "TOTAL" return, not "ANNUAL" return since it was not stated in the poorly worded survery. ... If they expect 34% total return over 10 years, then they are expecting annualized returns of 3% a year, i.e. passbook returns! Clearly, that doesn't make sense."

One possible explanation is that a few of the investors heard "total" return and gave an answer like 200%. Most others heard "annual" return and gave an answer like 12%. The average of all answers was 34%.

The above scenario is consistant with the average = 34%, while the median was only 15%. A few very high answers would tend to bring up the average quite a bit, but bring up the median only a small amount.

Best wishes,

I2
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