Returns & Performance
Arithmetic Mean Return
Definition
What is Arithmetic Mean Return?
The simple average of periodic returns.
Example in practice
How This Looks in Practice
Returns of 10%, 20%, and 0% have a 10% arithmetic mean.
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Related Terms
Returns & Performance
Total Return
The complete investment result from price changes plus income, assuming distributions are included.
Returns & PerformanceCapital Gain
The profit made when an asset or fund unit is sold for more than its cost.
Returns & PerformanceDividend
A payment made from a company's profits to eligible shareholders.
Costs & FeesManagement Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.