Learn how the geometric mean measures portfolio performance, focusing on compounding effects to provide a more accurate average return than the arithmetic mean.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Cierra Murry is an expert in banking, credit ...

In the investment world, it’s common to discuss average rates of return. It’s not sufficient, however, to simply add up historical returns and divide by how many there are. Processing Content The ...