I wanted found if is better composed yield (a x b) or sum of yields (a + b) and why.
And while on that i found one quite counterintuitive thing, namely that:
0.9 * 1.2 = 1.08
is same as
1.2 * 0.9 = 1.08
I know that this is very basic commutative law.
But if you use your experience with percentages, you know that depends on the base. It is something else to add 20% to 100 or to 120. So base number matters. But in the case above, it is same result if you add 20% to 100 and then take 90% of it, or take 90% of 100 and then add 20% to it. It is little bit counterintuitive, or is it just me?
No, it is not counterintuitive. Basically the bigger your base is, the more you add or take a way.
So if you add 20% and then take away 10% you take away more, as the base is larger.
If instead you take away 10% and then add 20% you add less, as the base is smaller.