What is the 'geometric mean return'? Definition & meaning

More terms

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Bed & ISA

Understand what Bed and ISA is and how it works

Arithmetic Mean

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

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Volatility

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

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

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Geometric Mean Return