An average return of zero can still reduce the balance
Hypothetical example — not market data
Up 20% then down 20% leaves AED960. The arithmetic average of the two percentages is zero, but capital fell 4%.
Methodology
Illustrative WHIUAE calculation. Linked references provide context, not observations for these inputs. Use the article’s fictional sequential returns. This is not historical October data and excludes fees.
Read chart data
| Scenario | Compounded balance |
|---|---|
| Start | 1,000.00 |
| After +20% | 1,200.00 |
| After −20% | 960.00 |