The Arithmetic Average Return Is The

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.