Frontier market and Geometric mean: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Add header.)
 
imported>Administrator
(CSV import)
 
Line 1: Line 1:
''Market classification.''
Geometric mean returns are calculated by taking account of compounding.
(Contrasted with the arithmetic mean, which ignores compounding).


A frontier market is too small to be considered an emerging market but is more developed than a least developing country.
For example, the geometric mean return calculated from sample returns of 4%, 5% and 6% is given by:
  (1.04 x 1.05 x 1.06)<sup>(1/3)</sup> -1 = 4.9968%.


== See also ==
* [[Arithmetic mean]]


Markets (in order of economic development) are often classified as:
::Developed;
::Emerging;
::Frontier;
::Least Developing.
==See also==
*[[International Bank for Reconstruction and Development]]
*[[United Nations Conference on Trade and Development]]
[[Category:Technical_skills]]
[[Category:The_business_context]]

Revision as of 14:19, 23 October 2012

Geometric mean returns are calculated by taking account of compounding. (Contrasted with the arithmetic mean, which ignores compounding).

For example, the geometric mean return calculated from sample returns of 4%, 5% and 6% is given by:

 (1.04 x 1.05 x 1.06)(1/3) -1 = 4.9968%.

See also