A 20% decline on a hypothetical $10,000 balance leaves $8,000. Returning from $8,000 to $10,000 requires a 25% gain. The loss percentage and recovery percentage differ because they use different bases.
The time needed to recover is uncertain, and some investments never regain earlier values. Adding contributions increases the balance but is not the same as investment recovery.
The risk experience simulator separates these effects. It does not assess risk tolerance, prescribe an allocation or tell anyone to buy, sell or hold.
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