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 ...

The simplest way to find the average (mean) of a set of numbers is to use the AVERAGE function. This calculation gives you the arithmetic mean, which sums up all the numbers and divides the result by ...

To calculate a price-weighted average, sum the stock prices and divide by the number of stocks. This average reflects changes in higher-priced stocks more than lower-priced ones. Use price-weighted ...