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What’s an acceptable level of performance for your portfolio? Before you can answer that question, you first have to be sure you’re calculating your returns correctly. Even professionals get it wrong sometimes. In this episode Mark examines how the availability heuristic and confirmation bias could affect your ability to make the best decisions with your portfolio. You can read more about the Beardstown Ladies Investment Club and how they miscalculated in this article. To understand more about how CalPERS projected future returns, see this story in the LA Times. A study titled "Why Inexperienced Investors Do Not Learn: They Do Not Know Their Past Portfolio Performance" shows how behavioral mistakes influence investors of all experience levels when it comes to calculating their portfolio performance. Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen. Financial Decoder is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures: The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk, including loss of principal. Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. Google Podcasts and the Google Podcasts logo are trademarks of Google LLC. Spotify and the Spotify logo are registered trademarks of Spotify AB. (1218-8ULE)