imported>Doug Williamson |
imported>Kmacharla |
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| 1. ''Options.''
| | Geometric mean returns are calculated by taking account of compounding. |
| | | (Contrasted with the arithmetic mean, which ignores compounding). |
| Referring to the terms of a ''European option'' (also known as a ''European-style option'') exercisable at any time up to its expiry.
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| Contrasted with an American option. | |
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| 2. ''Geography, politics and security.''
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| Relating to the geographical, political or security areas of Europe.
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| 3. ''European Union.''
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| The term 'European' is sometimes used in a loose - and potentially ambiguous - sense to refer to the European Union or to its institutions.
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| | 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%. |
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| == See also == | | == See also == |
| * [[American option]] | | * [[Arithmetic mean]] |
| * [[Europe]]
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| * [[European Association of Corporate Treasurers]]
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| * [[European Bank for Reconstruction and Development]]
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| * [[European Banking Authority]]
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| * [[European Banking Federation]]
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| * [[European Central Bank]]
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| * [[European Customs Union]]
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| * [[European Economic Area]]
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| * [[European Financial Reporting Advisory Group]]
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| * [[European Free Trade Association]]
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| * [[European Freight Trades Association]]
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| * [[European Fund and Asset Management Association]]
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| * [[European Investment Bank]]
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| * [[European Mentoring & Coaching Council]]
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| * [[European option]]
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| * [[European Payments Council]]
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| * [[European Securities and Markets Authority]]
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| * [[European Union]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Risk_frameworks]]
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| [[Category:Financial_products_and_markets]]
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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