Multiply the result by 100%, and your portfolio returned a geometric mean of 3.99% over five years, slightly less than the arithmetic mean of (5+3+6+2+4) ÷ 5 = 4. Calculate the Geometric Mean in ...

The geometric mean is best used to calculate the average of a series of data where each item has some relationship to the others. That’s because the formula takes into account serial correlation.

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