Frontier market and Geometric mean: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson m (Add header.) |
imported>Administrator (CSV import) |
||
Line 1: | Line 1: | ||
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)<sup>(1/3)</sup> -1 = 4.9968%. | |||
== See also == | |||
* [[Arithmetic mean]] | |||
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