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 ...

First in a series. We asked ChatGPT which method is the best for examining portfolio returns. Then we asked our expert. Editor’s note: Today, we begin a new series in which we ask ChatGPT questions ...

Learn what compound interest is, how it’s calculated—from annual rates to continuous compounding—and why it’s powerful for savings (and dangerous for debt).

In this paper we discuss the relevancy of the geometric mean as a portfolio selection criteria. A procedure for finding that portfolio with the highest geometric mean when returns on portfolios are ...

The valuation of Asian, or average price, options and of European options on portfolios in a "Black-Scholes" environment has given researchers trouble. The difficulty with these problems is that the ...

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 ...