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To: Sr K who wrote (9376)4/21/2010 8:55:26 PM
From: Kirk ©  Respond to of 20435
 
I think a better way than my original would be to look at each period as if managing money and multiply the results...

so beating by 1% 4 times and missing by 4% one time would become

(1.01)x(1.01)x(1.01)x(1.01)x(0.96)x100%=99.9% not 100.0%

or beating by 10% 4 times and missing by 40% one time is

(1.10)x(1.10)x(1.10)x(1.10)x(0.60)x100% = 87.85%
which reflects it is hard to make up for a big loss.