The average compound return earned per year over multiyear period is called geometric average return.
The compound return is a rate of return that typically expresses the cumulative impact of a series of gains or losses on an initial quantity of capital over time. The annualized rate at which capital has compounded over time is what is indicated by the proportion of compound returns that are often expressed in annual terms. If an investment fund claims to have generated a 10% annual compound return over the past five years, this indicates that at the end of the fund's fifth year, its capital has increased to the size it would have if the funds on hand at the beginning of each year had generated exactly 10% by the end of each year.
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