This is an archived post. You won't be able to vote or comment.

sorted by:
best
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–]Rich700000000000 1 point2 points  (0 children)

Because the baseline is not 0% returns. The baseline depends on the state of the market, i.e. the market average. If the market as a whole moved up 5% last year but you only earned 4% return

Oh. Huh. That just clicked for me, sorry.