• What is compound annual growth rate?

    1 month ago - By Business Insider

    CAGR is a useful mathematical formula that shows you how an investment has historically performed.
    Alyssa Powell/Insider
    CAGR stands for compound annual growth rate, and it is a measure of an investment's average past performance over a long period of time.
    CAGR doesn't predict how an investment will perform in the future.
    CAGR has its limitations and doesn't necessarily reflect an investment's actual performance.
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