The Geometric Mean is a type of average that is calculated by multiplying all the numbers in a set together, then taking the nth root, where ‘n’ is the total number of values. It’s especially useful in situations involving proportional growth or rates of return, but can only be used with positive numbers.
0 of 3 Questions completed
Questions:
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 3 Questions answered correctly
Time has elapsed
Average score |
|
Your score |
|
What is the arithmetic mean?
Why is the geometric mean preferred over the arithmetic mean for calculating average rates of return?
What does a rate of return of 1.0 represent?
(…or two monthly installments of $99.50)