22 июн. 2023 г. · A geometric mean helps you evaluate investment returns based on the number of periods you've held it and how much it has returned over time. Geometric vs. Arithmetic · Special Considerations

1 окт. 2024 г. · The Geometric Average Return is a rate of return that is calculated by taking the product of all rates and then setting it to the 1/nth power.

It is used to calculate average rate per period on investments that are compounded over multiple periods.

Investors use geometric returns because they are a more consistent and reliable method of finding a portfolio's average performance. The geometric return ...

For volatile numbers, the geometric mean provides a far more accurate measurement of the true return by taking into account year-over-year compounding.

The average multi-period return is 0.2290. This calculation is referred to as the “geometric average” and is consistent with the manner in which we do the time ...

The geometric mean return formula is used to calculate the average rate per period on an investment that is compounded over multiple periods.

It is computed by taking the geometric average of the portfolio subperiod returns. Also called the time-weighted rate of return or Dietz algorithm.

The geometric return is a better measure of performance when compared to the arithmetic mean, as it takes into account the volatility of returns.

In this post, we explain the geometric average return formula using numerical examples and discuss how it differs from the arithmetic average return.