Average Annual Growth Rate - AAGR
For example, if your portfolio grows 10% one year and 20% the next, your AAGR would be 15%. To this end, fluctuations in the portfolio's rate of return between the beginning of the first year and the end of the year are not included in the calculations, which may lead to some measurement error.
To reduce any possible measurement error, an analyst can simply take the average price at the beginning and end of the two measurement periods, and use those average prices to determine each year's return, and then the AAGR.
Investment dictionary. Academic. 2012.
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