Discover why investors prefer the geometric mean for assessing portfolio performance due to its compounding effect, and learn how it differs from the arithmetic mean.

The simple definition of a mean is that of a numeric quantity which represents the center of a collection of numbers. Here the trick lies in defining the exact type of numeric collection, as beyond ...

There is the use of the Geometric Mean (GM) in place of the Arithmetic Mean (AM), as GM moderates the volatility in prices ...