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

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 ...

The simplest way to find the average (mean) of a set of numbers is to use the AVERAGE function. This calculation gives you the arithmetic mean, which sums up all the numbers and divides the result by ...