Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

‘Arithmetic mean’ is a fancy way of saying ‘mean’ or ‘average.’

To find the arithmetic mean, you add together a set of numbers and then divide your answer by the amount of numbers you had in that original set.

This may sound wordy - especially for math-o-phobes - but it’s really simple.

Take 1,2,3,4,5 as a set of numbers.

1+2+3+4+5 =15

In our original set, there were 5 numbers. So to get the average we just do….

15 ÷ 5 = 3

Simples.

More terms

Volatility

A measure of how much the prices of an asset or index vary over time.
Read more

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.
Read more

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.
Read more

Rate of Return

Profit on an investment, expressed as a percentage of the investment.
Read more

Bed & ISA

Understand what Bed and ISA is and how it works
Read more

Costs and Charges

The money you pay when investing.
Read more

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
Read more

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
Read more

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk