Discover why investors prefer the geometric mean for assessing portfolio performance due to its compounding effect, and learn how it differs from 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. The proper way to calculate ...
The formula of Mean: In statistics, "mean" is a measure of central tendency, calculated by summing up all the values in a dataset and dividing by the number of data points. The single numerical value ...
The GEOMEAN and HARMEAN are advanced statistical functions that typically require a deeper understanding of mathematics. This ...