It is not an arithmetic linear sequence. As each term is multiplied (or divided) by the same number (2) to make the following term, this sequence is called a geometric sequence. The next term in ...

Here’s what we asked ChatGPT to kick off our series: When analyzing investment returns, both arithmetic and geometric returns have their uses, and it ultimately depends on the context and the ...

Because of this, investors usually consider the geometric mean to be the more accurate measure of returns. An arithmetic mean is the sum of a series of numbers divided by the number of items in ...

Notably, the geometric average return in this example was only very slightly lower than its arithmetic mean counterpart. Nonetheless, even with a less volatile sequence that had only good ...

She is a FINRA Series 7, 63, and 66 license holder ... unbiased content in our editorial policy. Envestnet PMC. "Arithmetic, Geometric and Other Types of Averages." ...