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Geometric Mean Return

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

A way of calculating compound returns on an investment or savings over a set period of time.

More terms

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
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Leverage

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

The data or information that is likely to impact a company's stock price.
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Zero-Sum Game

A situation in which one person's gain is another's loss.
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Total Return

This is the measurement of a fund’s performance in a specific period.
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United States Dollar (USD)

The famous greenback our friends in the US use as currency.
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Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.
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