The risk of an item is reflected in its variability from its average level. For comparison, a stock analyst may want to determine the level of return...

An average of the subperiod returns, calculated by summing the subperiod returns and dividing by the number of subperiods.

Also called the time weighted rate of return, a measure of the compounded rate of growth of the initial portfolio market value during the evaluation...

The arithmetic average; that is, the sum of the observations divided by the number of observations.