Average Rate of Return in Common Probability Distribution Formulas

Average Rate of Return is the average annual return (profit) from an investment. It is calculated by dividing the average annual profit by the cost of investment and multiplying by 100 percent. And is denoted by ARR.

Common Probability Distribution formulas that make use of Average Rate of Return

fxCalmar RatioGo

FAQ

What is the Average Rate of Return?

Average Rate of Return is the average annual return (profit) from an investment. It is calculated by dividing the average annual profit by the cost of investment and multiplying by 100 percent.

Can the Average Rate of Return be negative?

{YesorNo}, the Average Rate of Return, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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