Average Loss

Average Loss is a geometric average of the periods with a loss. It is calculated by compounding the returns for loss periods where rates of return are greater than or equal to 0 and then the monthly average is calculated.

4Calculation

Determine number of gain periods,

Average Gain Return,

If T2 > 0

Otherwise, ALR = N/A

Arithmetic average loss is defined as:

Annualized loss return,

Annualized arithmetic average loss,