Average Return
Average return is a measure of the overall performance of an investment or portfolio. It is calculated by taking the sum of all returns over a given period (such as one year) and dividing that total by the number of periods included in the calculation. Average return can be expressed as either a percentage or dollar amount.
For example, if you invested $100 in a stock at the beginning of 2020 and it was worth $150 at the end of 2020, then your average return would be 50%. ($50/$100 = 0.5). This means that your initial investment has grown by 50% over the course of one year.
In cryptocurrency investing, average return can also be used to measure how much profit an investor makes on their investments over time. To calculate this figure, take all gains or losses from trades made during a certain period and divide that total by the number of trades made within that same timeframe. For example, if you purchased 5 different cryptocurrencies for $20 each and sold them for $25 each after 6 months, then your average return would be 25% ($25 -$20/5 coins=$1/$20=0.05=5%).
It’s important to note that past performance does not guarantee future results; therefore investors should use caution when evaluating any potential investments using only historical averages as reference points. Additionally, since market conditions are constantly changing due to new information being released about particular assets or events happening around world affairs; even small changes can lead to large differences in expected returns between different periods so it’s important to remain aware of current events before making any decisions related to investing activities
