Glossary
- Geometric Mean
- A measure of central tendency calculated by multiplying a series of numbers and taking the nth root of the product, where n is the number of items in the series.
The geometric mean is often used when finding an average for numbers presented as percentages.
- Arithmetic Mean
- Simple average, equal to the sum of all values divided by the number of values.
- Standard Deviation
- A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns.
More generally, a measure of the extent to which numbers are spread around their average.
- S&P 500
- Standard and Poor's 500 best companies
- DJIA (Dow Jones Industrial Average)
- 30 of the best Blue Chip companies on the stock exchange. The average is used to gauge market performance.
