The Arithmetic Average Return Is The

question 88

Multiple Choice

The arithmetic average return is the:

• A)summation of the returns for a number of years, t, divided by (t − 1).
• B)compound total return for a period of years, t, divided by t.
• C)average compound return earned per year over a multi-year period.
• D)average squared return earned in a single year.
• E)return earned in an average year over a multi-year period.