What it is: As the economy moves up and down, so do investors' returns. To determine your yearly growth rate over several years on an investment, use the compound annual growth rate -- CAGR.
How to use it: Think of CAGR as the rate at which an investment would grow if the rate were constant. Investopedia has a good numerical example of this concept.
Best for: Determining the average rate of growth on a stock, bond, portfolio, real estate, or any type of investment over multiple years.
By Jill Krasny and Zachry Floro, Business Insider