By: La Papillion Was nudged by millionairemind to do a little investigation into the total returns of STI should year 2008 fall by 20%. Since I have not been checking STI absolute value (I did check the daily relative % drop/rise though), I was quite surprised that since the start of the year, we've dropped a cool 20%. I did post a table with the values of all the CAGR for different years from investing in STI, in this post. I think this time, I better list down my assumptions for calculating the values: 1. Most importantly, the data is taken from Yahoo! finance website. The price is adjusted closing price. 2. The CAGR (compound annual growth rate) is calculated like this: To find the CAGR from period A to period B: CAGR = (price at 31-dec of period B / price at 1st-jan of period A)^(1/(B-A)) - 1 If market is not opened on 31st Dec or 1st Jan, the price of the market days closest to the dates will be taken instead. 3. The AVERAGE CAGR is calculated by taking a simple average of all the CAGR of the same period i.e. sum of all CAGR of the same period divided by the number of CAGR taken. Below is the table calculated for the returns on STI for different periods, assuming that 2008 closed on 31st Dec at 2769, a 20% drop from 1st Jan 2008: Read more...