Arithmetic Mean Return

Description

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. The Arithmetic Mean Return is the sum of annual revenue changes (compared with the previous year) divided by number of years.

Related formulas

Variables

AMRArithmetic Mean Return (dimensionless)
nNumber of years (tn -to) (dimensionless)
xiAnnual revenue (i=1 to n) (dimensionless)