Geometric Mean Return

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Geometric Mean Return
Also termed time weighted rate of return. Evaluates the compounded growth rate of initial market value of portfolio during the period under consideration. The calculation is based on the assumption that all cash distributions are invested again in the portfolio. Calculated by taking a geometric average of the subperiod returns of the portfolio.

Recommended for you:

  1. Arithmetic Mean Return
  2. Dollar-Weighted Rate of Return
  3. Dollar Return
  4. Subperiod Return
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