Sunday, July 18, 2010
"Men have had recourse to many calculations"
I guess that's the beauty of what we do, as it provides us with flexibility and options.
The problems arise when individuals use erroneous calculations or use them in a manner that is inappropriate. And some firms have been known to derive their own calculations, even though there are plenty good ones already available: and unfortunately, sometimes the ones they derive are flawed!
We will always have debates about the various approaches (e.g., geometric vs. arithmetic, transaction-based vs. holdings-based), but that's fine. "Variety's the spice of life," yes?