European and Geometric mean: Difference between pages

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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.
 
Contrasted with an American option.
 
 
2.  ''Geography, politics and security.''
 
Relating to the geographical, political or security areas of Europe.
 
 
3.  ''European Union.''
 
The term 'European' is sometimes used in a loose - and potentially ambiguous - sense to refer to the European Union or to its institutions.  


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 ==
== See also ==
* [[American option]]
* [[Arithmetic mean]]
* [[Europe]]
* [[European Association of Corporate Treasurers]]
* [[European Bank for Reconstruction and Development]]
* [[European Banking Authority]]
* [[European Banking Federation]]
* [[European Central Bank]]
* [[European Customs Union]]
* [[European Economic Area]]
* [[European Financial Reporting Advisory Group]]
* [[European Free Trade Association]]
* [[European Freight Trades Association]]
* [[European Fund and Asset Management Association]]
* [[European Investment Bank]]
* [[European Mentoring & Coaching Council]]
* [[European option]]
* [[European Payments Council]]
* [[European Securities and Markets Authority]]
* [[European Union]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Risk_frameworks]]
[[Category:Financial_products_and_markets]]

Revision as of 14:30, 28 May 2013

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