Moderate return-low risk vs high returns-high risk investments
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To quantify Buffet's #1 rule of investing, "Don't lose money", I take the assumption that % returns of an investment follow a Normal distribution. Now a high return high risk investment might follow N(mu=50%, sigma=70%) while low return low risk investment follow N(mu=20%, sigma=10%). from operator import mul from functools import reduce from random import gauss from statistics import median from typing import List def avg_cagr(percents: List[int]) -> float: '''Given (successive) % annual growth rates, returns average Compound Annual Growth Rate''' amount = reduce(mul, [1+p/100 for p in percents]) amount = amount if amount > 0 else 0 # at worst, complete amount can be lost but can't go negative return (amoun...