In this video, I explain the difference between arithmetic mean and geometric mean of stock returns. I also show how to calculate the 2, as well as why the geometric mean is a better indicator of the actual average (compounded) return an investor makes on their investment.
ABOUT ME:
My name is Atif Ikram. I am a Clinical Professor of Finance at Arizona State University, where I teach courses in Corporate Finance, Personal Finance, Real Estate Finance and Investments (wpcarey.asu.ed....
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