Return is defined as the gain or loss made on the principal amount of an investment and acts as an elementary measure of profitability. Several forms of returns are derived through different mathematical calculations and among these, average or arithmetic return is widely used. Average return is the simple average where each investment option is given an equal weightage. For example, there are three stocks that have generated 10%, 5% and -8% returns in the past one year and therefore, the arithm ..
