discussion on compounding, business and finance homework help

In summation of your argument: Compounding can make things appear to be larger than they are. This effect can arise when returns resulting from an event are compounded over a long holding period. In this setting it is not uncommon for scholars and practitioners to describe returns resulting from compounding as a return caused by the individual event;this mistake results in exaggerating the significance of the event. Some of these errors are in favorite books, rare events such as news paper articles, investment advisors’ research reports, and finance journal article. Is accurate compounding measurements crucial for understanding the significance of high and low return days, corporate events such as stock splits, and mutual fund performance in your opinion if so why?Alternatively, why not?