What are Average Returns in Strategic Management?

Learn Average Returns definition in strategic management with explanation to study “What are Average Returns”. Study average returns explanation with strategic management terms to review strategic management course for online MBA programs.

Average Returns Definition

  • There are returns equal to those an investor expects to earn from other investments with a similar amount of risk.

    Strategic Management by Michael A. Hitt, R. Duane Ireland, et al.



Average Returns Explanation

The average return is the straightforward scientific normal of a progression of profits produced over some undefined time frame. A normal return is determined a similar way a straightforward normal is determined for any arrangement of numbers. The numbers are included into a solitary aggregate, and after that the whole is separated by the include of the numbers in the set. There are a few return measures and approaches to ascertain them, however for the number-crunching normal return, one takes the entirety of the profits and partitions it by the quantity of return figures. The normal return tells a financial specialist or examiner what the profits for a stock or security have been before or what the profits of an arrangement of organizations are. This isn't equivalent to an annualized return. The normal return overlooks exacerbating.

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