Evaluates the Geometric Mean Return of the performance of a portfolio measured over several intervals.
A double equal to the Geometric Mean Return of a portfolio.
Applicability of the Geometric Mean Return
The geometric mean is a useful measure because it factors out the the level of return for each of the intervals for which the same level of return would be generated.
Example: Say that we know that the return over the 1st, 2nd, 3rd, 4th and
5th year to be 10%, 12%, 15%, 13% and 16% respectively. That is, we have:
returnOverEachPeriod = {0.10, 0.12, 0.15, 0.13, 0.16}
. Then by applying
this method we find that the geometric mean return is 13.18
%, or
0.1318
in decimal format. Please note that this method returns the
geometric mean return in decimal format.
PerformanceEvaluation Class | WebCab.COM.Finance.Portfolio Namespace