The geometric return from the S&P 500 from 1928 to 2023 was 9.8%, and from 2014 to 2023 it was 11.91% – still closer in the last decade, but under 12% and lower than the averages from the ...

A better metric is what’s called the compound return, or the geometric return, that explicitly incorporates the impact of volatility on wealth growth over time. I won’t get in the weeds here ...

However, the stock traded for $157.32 on the last day. This means that the arithmetic mean of returns is understated. The geometric mean factors in compounding and volatility. Because it is ...