If an investment returns 50% the first year, -50% the second, 50% the third, -50% the fourth, and 50% the fifth, you’d have an average return of 10%.
Calculating Interest 3: Average Return
If an investment returns 50% the first year, -50% the second, 50% the third, -50% the fourth, and 50% the fifth, you’d have an average return of 10%.