On Tue, 6 Dec 2005 17:25:38 +0000, MPuser
wrote:


Ron,

Great stuff here, thanks for the help. Just a quick thought...

If the hypothetical investment is a mutual fund portfolio...should the
expected return of 10% be compounded monthly or annually? Wouldn't
this drastically affect the outcome of the future value?

The error in the estimate of your expected return will be greater than the
potential error in selecting a monthly vs yearly compounding period.
--ron