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cRYPTO Glossary
Explore essential terms and concepts in the world of cryptocurrency, blockchain, and trading
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Average Return
Average return refers to the arithmetic mean of a series of returns generated by an investment, portfolio, or asset over a specified period of time.
Explanation:
- Arithmetic mean: Average return is calculated by summing up all individual returns over a period and dividing by the number of returns.
- Time period: The specified period could be daily, monthly, quarterly, or annually, depending on the context of the analysis.
- Investment, portfolio, or asset: Average return provides an indication of the historical performance of an investment or asset over the chosen time frame.
Key Points:
- Measurement of performance: Average return helps investors assess the typical performance of an investment over a specific period.
- Use in financial analysis: It is a fundamental metric in finance for evaluating the profitability and risk of investments.
- Considerations: Average return is one of several metrics used alongside others like volatility, Sharpe ratio, and maximum drawdown to form a comprehensive assessment of an investment's performance.
Valdis Zhvaginsh
Crypto Enthusiast, CWT Editor
Hello, I'm Valdis
When I began exploring cryptocurrencies, I had many questions. Over time, I've gathered some of the best resources that helped me, and I believe they can be useful to you as well.
I hope these resources assist you in starting your journey into the world of cryptocurrencies and provide useful tools for everyday tasks.
If you have any suggestions or corrections, please contact me
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