The arithmetic mean is the result of adding all numbers in a series, counting the number of numbers in the series, and then dividing the sum by the count.

Investors usually consider the geometric mean a more accurate measure of portfolio performance than the arithmetic mean because it accounts for compounding. Learn more.

It is calculated by the following methods: Direct Method - Arithmetic mean by direct method is the sum of all observations in a series divided by the total number of observations.

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 comparison is between arithmetic or geometric mean returns. Returns themselves are neither arithmetic nor geometric. Follow us on Facebook, Instagram, Twitter, and LinkedIn!

Mean Formula: Check what is mean, its definition and its formula here. Also, get solved examples of calculating mean for grouped and ungrouped data using direct mean formula and assumed mean method.