Discover why investors prefer the geometric mean for assessing portfolio performance due to its compounding effect, and learn how it differs from the arithmetic mean.

Kristina Zucchi is an investment analyst and financial writer with 15+ years of experience managing portfolios and conducting equity research. Charlene Rhinehart is a CPA , CFE, chair of an Illinois ...

1 3, 2 3, 3 3, 4 3, 2. Arithmetic Progression (AP): It is a list of numbers in which each term is obtained by adding a fixed number to the preceding term except the first term. 3. Common difference (d ...