To calculate the average rate of return, a business will use the following formula: \(\text{Average rate of return (\%)}=\) \(\frac{\text{Average annual profit (total profit ÷ number of years)}}{\ ...

This formula calculates a weighted average by ... there are some key differences between these two measures: The WACC is the average rate of return that a company is expected to pay to its ...

If an investment adviser touts an impressive average rate of return, be very wary, because losses can “hide” among the gains and hinder your financial success. Let’s explore the meaning of ...