Apologies if this has been asked before, I couldn't find it, or if this is so basic, but I feel it needs asking.
I'm sure we've all seen tables like this outlining fund performance.
What I'm unclear on is how to interpret those return values.
Say for example I put $100 in FundA, and it performs like this (extreme values to make my point clearer)
Year Value of my account Performance % 2010 $100 2011 $10 -90% 2012 $20 +100% 2013 $40 +100% 2014 $80 +100% 2015 $100 +25%
Would the "5 Year Return" advertised by a bank, in a table like the one above be:
a) 0% - because I started with $100 and ended with $100
b) 47% - the average of -90, 100, 100, 100, 25
I would expect and hope the answer is 'a', but... is it?
EDIT: Here's the advertised fund
and here's a Google Doc Sheet with the numbers, none of them match the advertised performance