When returns are variable by period, the geometric mean will always be [...] than the arithmetic mean.
Answer
less
If you want to change selection, open document below and click on "Move attachment"
Subject 4. Measures of Center Tendency value. It is always less than the arithmetic mean if values in the data set are not equal.
It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. <span>When returns are variable by period, the geometric mean will always be less than the arithmetic mean. The more dispersed the rates of returns, the greater the difference between the two. This measurement is not as highly influenced by extreme values as the arithmetic mean.
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.