Learn why the geometric mean is preferred for portfolio returns and how it offers deeper insights into financial performance that the arithmetic mean.

Learn how the geometric mean measures portfolio performance, focusing on compounding effects to provide a more accurate average return than the arithmetic mean.

Mean is a representative value of the distribution characteristics. Arithmetic mean is used to calculate the value for mean scores, mean age, and mean income etc. When we calculate arithmetic mean, we ...

In the investment world, it’s common to discuss average rates of return. It’s not sufficient, however, to simply add up historical returns and divide by how many there are. Processing Content The ...