Consider this sequence of numbers: 5, 7, 9. Can you spot the pattern? Here’s another with the same pattern: 15, 19, 23. One more: 232, 235, 238. “Three equally spaced things,” says Raghu Meka, a ...
Learn how the geometric mean measures portfolio performance, focusing on compounding effects to provide a more accurate average return than the arithmetic mean.
Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Geometric mean provides a better measure of portfolio performance ...