claim: (Multiplying .95 by itself 15 times yields 46.3 percent.)”
evidence: Assuming returns are reinvested, if the returns over n {\displaystyle n} successive time sub-periods are R 1 , R 2 , R 3 , ⋯ , R n {\displaystyle R_{1},R_{2},R_{3},\cdots ,R_{n}} , then the cumulative return or overall return over the overall time period is the result of compounding the returns together: ( 1 + R 1 ) ( 1 + R 2 ) ⋯ ( 1 + R n ) − 1 {\displaystyle (1+R_{1})(1+R_{2})\cdots (1+R_{n})-1} If the returns are logarithmic returns however, the logarithmic return over the overall time period is: ∑ i = 1 n R l o g , i = R l o g , 1 + R l o g , 2 + R l o g , 3 + ⋯ + R l o g , n {\displaystyle \sum _{i=1}^{n}R_{\mathrm {log} ,i}=R_{\mathrm {log} ,1}+R_{\mathrm {log} ,2}+R_{\mathrm {log} ,3}+\cdots +R_{\mathrm {log} ,n}} This formula applies with an assumption of reinvestment of returns and it means that successive logarithmic returns can be summed, i.e.