Question

The average compound return earned per year over a multi-year period is known as the:

Answer 1

The average compound return earned per year over a multi-year period is known as the geometric average return.

What is an Average Return?

An average return is a mathematical average value of a number of returns generated over a specific period of time. An average return helps in measuring the past performance or portfolio of an individual or government.

When an average compound return is earned per year over a multi-year period, then it is known as the geometric return of that individual or government.

Learn more about an Average Return here:

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