The Rule of 72 (and Where It Breaks)
The Rule of 72 turns a return into a doubling time by simple division. Here is the exact formula behind it, and the volatility drag that makes it optimistic.
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The Rule of 72 turns a return into a doubling time by simple division. Here is the exact formula behind it, and the volatility drag that makes it optimistic.
A monthly stock return depends on which two prices you pick, whether dividends count, and whether the series is split-adjusted. Each one measured on real data.