The arithmetic mean is simple, and most people with even a little bit of finance and math skill can calculate it. It’s also a useful measure of central tendency, as it tends to provide useful ...

Barbie caught a lot of flack back in the ’90s for declaring, “Math class is tough!” Today we find ourselves in the disorienting position of defending her. We recently got a note from an ...

The comparison is between arithmetic or geometric mean returns. Returns themselves are neither arithmetic nor geometric. If that were the initial question, arithmetic mean returns would be a ...

Arithmetic Mean Return The arithmetic mean is commonly ... 3 + 5 + 8 -1 + 10 = 25/5 = 5 This is easily accomplished using simple math, but the average return fails to consider compounding.

is the arithmetic average or arithmetic mean — calculated by adding up all the individual items and dividing by how many there are. This is effective in situations where the items being measured ...