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 ...

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 ...