# Question: this is an example of the how one might conclude...

###### Question details

This is an example of the how one might conclude the wrong
thing when looking at mutual fund returns from year to year......
In 2008 a fund lost 37.13% and gained 65.71% in 2009.... Then in
2010 it gained 12.66%,0 so if one added -37.13 to +65.71 to
+12.66%.... the numbers come to positive 41%.... Giving the
impression that one would have made about 41% over those three
years....... However if ones applies actual numbers to history, it
comes out differently...... If one started with $100 and then it
went down 37.13% ($37.13) than one would have $62.87...... the
following year went up 65.71%..... in which would have brought it
$104..... The next year it went up 12.66% which brings it to
$117..........

So a net gain of 17% over 3 years..... A far cry from 41% that
it would look like with just simple math.....

I am looking for a formula that one could apply to this type
of scenario so as to arrive at a final number which reflects an
accurate final return. ......Can you do this? If so, how much would
you like to receive in order to arrive at a formula that one could
use in order to arrive at the correct final return?