# Average Annual Growth Rate - AAGR

- Average Annual Growth Rate - AAGR
- The average increase in the value of an individual investment or portfolio over the period of a year. It is calculated by taking the arithmetic mean of the growth rate over two annual periods. The average annual growth rate can be calculated for any investment, but will not include any measure of the investment's overall risk, as measured by its price volatility.
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.*

### Look at other dictionaries:

**compound annual growth rate** — Annual return calculated based on each year s previous balances where each previous balance includes both the original principal and all interest accrued from prior years. Best defined by example. Bloomberg Financial Dictionary If you invest $100 … Financial and business terms

**Compound annual growth rate** — (CAGR) is a business and investing specific term for the smoothed annualized gain of an investment over a given time period.[1] CAGR is not an accounting term, but remains widely used, particularly in growth industries or to compare the growth… … Wikipedia

**growth rate** — compound annual growth rate for the number of full fiscal years shown. If there is a negative or zero value for the first or last year, the growth is N.M. (not meaningful). Bloomberg Financial Dictionary * * * growth rate ˈgrowth rate noun… … Financial and business terms

**average annual instantaneous size-specific growth rate** — a method for comparing growth rates of fish of equivalent size instead of equivalent age. The average annual instantaneous growth rate (the average of individual log fork length at age n + 1 minus log fork length at age n) is plotted against the… … Dictionary of ichthyology

**Medicare Sustainable Growth Rate** — The Medicare Sustainable Growth Rate (SGR) is a method currently used by the Centers for Medicare and Medicaid Services (CMS) in the United States to control spending by Medicare on physician services.[1] Enacted by the Balanced Budget Act of… … Wikipedia

**List of countries by population growth rate** — This is a list of countries, and self governing dependent territories by population growth rate, with estimates taken from the 2006 edition of the United Nations World Population Prospects report. [… … Wikipedia

**Rate of return** — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia

**Annual average daily traffic** — Annual average daily traffic, abbrevated AADT, is a measure used primarily in transportation planning and transportation engineering. It is the total volume of vehicle traffic of a highway or road for a year divided by 365 days. AADT is a useful… … Wikipedia

**rate** — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… … Financial and business terms

**Average** — An arithmetic mean of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA s stocks, and divides … Financial and business terms

**average** — An arithmetic mean return of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA stocks, and… … Financial and business terms