Definition: Popularly called Geometric Mean Return, it is primarily used for investments that are compounded. It is used to calculate average rate per period on investments that are compounded over ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

In the investment world, it’s common to discuss average rates of return. It’s not sufficient, however, to simply add up historical returns and divide by how many there are. The proper way to calculate ...

Highlights,Calculates compound rate of growth over time.,Assumes reinvestment of all cash distributions.,Also known as time-weighted rate of return.,Geometric mean return, also referred to as the time ...

The need to rebalance a portfolio to its target allocation is something most investors understand. Yet understanding it, and actually doing it, don't apparently go hand in hand. Though rebalancing is ...

It is clear from looking at the current landscape that volatility is rapidly becoming a key focus for asset management. Witness the birth of “low-volatility” ETFs and the popularity of ...