An unbiased forecast of the terminal value of a portfolio requires compounding of its initial value at its arithmetic mean return for the length of the investment period. Compounding at the arithmetic ...

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 ...

Scholars often consider the arithmetic mean as the only mean available. This gives rise to several mistakes. Thus, in a first course in statistics, it is necessary to introduce them to a more general ...