Geometric mean return
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Campbell R. Harvey's Hypertextual Finance Dictionary
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Geometric mean return
Also called the
time weighted rate of return
, a measure of the
compounded
rate of growth of the initial
portfolio
market value
during the evaluation period, assuming that all cash distributions are reinvested in the portfolio. It is computed by taking the geometric average of the
portfolio
subperiod returns
.
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Campbell R. Harvey
. All Rights Reserved.
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