how to calculate the average annualized return? I can do average return, I don't know what is annualized thou. can somebody say where (in a textbook hopefully) can I read about this? thanks!
Annualized return simply means average amount of money that a investment earns each year over a given amount of time.

If the compounding rates are the gains you've earned on your investment, The annualized return is:

$$AR = (1+totalreturn)^{\left({1\over{n}} \right)}-1$$ 

This equation shows the return each year over a full span of time.  Total return is the total change in the variable over all periods.