Geometric Average

The geometric average is found by multiplying a set of numbers and taking the nth root, where n is the number of numbers in the set. For example, 2 multiplied by 8 equals 16. The square root of 16 is 4, the geometric average of 2 and 8. The geometric average is often used to find the average rate of return of the securities in an investment portfolio.

See also: Arithmetic Mean