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What is Compound Annual Growth Rate?

Definition of Compound Annual Growth Rate

It is a useful metric to gauge sustained growth without the vicissitudes of short-term volatility reflected in the mix. The formula is: CAGR = ( EV / BV)1 / n - 1 (where EV = Investment's ending value, BV = Investment's beginning value, n = Number of periods (days, months, years, etc)).
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