Risk and returns

We all know that risk and return have a direct relationship. If you want a bigger return then you must be willing to take additional risks that come along with it.
Let us see how to compute rate of return.
Holding period return for stock
HPR = (P1-P0+D1) / P0 
Whereas P0=beginning price, P1= ending price, D1 = dividend
This return shows what % you earned during the stock holding period.
Example
Ending price = 24
Beginning price = 20
Dividend = 1
HPR = (24-20+1) / 20 = 25%
This is for a single period. In contrast when you want to measure return over multiple periods, you may need to measure how your investment performed over a preceding five-year period. Note that return measure is more ambiguous in this case.
Here's the example of multiple period return.