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.

Kristina Zucchi is an investment analyst and financial writer with 15+ years of experience managing portfolios and conducting equity research. Charlene Rhinehart is a CPA , CFE, chair of an Illinois ...

Of all the ideas we've forgotten from math class, the most important to relearn — because it illuminates our most urgent challenges — is the difference between arithmetic and geometric progressions.

Four estimates of the current process average are compared in the situation when measurements are made at equal intervals of time and two types of variance components, σ 2 2, the variance of a ...