Perhaps the arithmetic mean (of 2 numbers) should also be an operator. Report comment. Reply. Martin Moene says: August 24, 2024 at 12:59 pm Like the insight this article brings, the unification :) ...

When the arithmetic mean of 0.67% is applied to each stock price, the end value is $152.63. However, the stock traded for $157.32 on the last day.

We recently got a note from an anonymous “math lover” who insists the words “math” and “arithmetic” do not mean the same thing, despite the fact that many people use them interchangeably.

As shown previously, at -20.08%, the geometric mean provides a return that’s a lot worse than the 12% arithmetic mean. But it is the result that represents reality in this case.