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Compound Annual Growth Rate - CAGR
The compound annual growth rate (CAGR) is the rate at which an investment grows annually to reach a given end value. It's calculated by taking the nth root of the total percentage growth rate where n is the number of years in the period being considered.
CAGR doesn't represent reality. It's an imaginary number that describes the rate at which an investment grew as though it had grown at a steady rate, which is rarely the case.
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