Forum Archive Index - December 2000

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Hugh,

 

G: Are you buying the 2000 operating system and programs from Microsoft? I noted a large quantity of security bulletins coming through lately.

H: I have the impression that Bill is pushing these systems and that his staff does not do enough testing.

Sure, there are new viruses coming through all the time but I am not spending a lot of time applying virus controls to my 98,2nd edition and then having to start all over again with the 2000 version.

G: The public seems to think the same and the Micr. shares are sliding.

 

H: By the way, how did Will Bryant get on with the sale (to readers) of the internet fire extinguisher?

 

G: I don't know, I heard that he got some on special for new readers to buy.

 

H: Back to shares, why does some literature give results in average instead of compound returns? It is very confusing!

G: Quoting average returns should be outlawed!!

An average return of 20% over 5 years corresponds with a compound return of 14.9%! 

 

The sophisticated client will think in compound interest terms;  unless the word 'compound' is used, he/she must accept that the word 'average' is applied and that the result requires recalculation to obtain the 'compound' rate.

 

Sometimes the 'average' is used to get an advantage over a competitor's result (which was expressed as a 'compound' rate).

The client may not be sufficiently focussed to notice that or does not know how to do the recalculation.

 

H:I must leave you: I am busy hanging hemp curtains; they cost some $ 5000 but I got them very cheap!!

 

 

Gerry