What is more "accurate"?

CFA Level I Corporate Finance
#1

If I want to calculate the average annual return for a group of stocks, is it better to calculate the average for each of their monthly returns and get the annual return from there, or to first calculate the annual returns for each of the stocks, and get the average from there instead?

Sorry if this is in the wrong place.

#2

First calculate the annual return for each stock (compounding the monthly returns), then calculate the (possibly weighted) average of the annual returns.

Don’t apologize; this is the right place.

#3

Thank you very much

#4

My pleasure.