Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Vikki Velasquez is a researcher and writer who has managed, ...

In the investment world, it’s common to discuss average rates of return. It’s not sufficient, however, to simply add up historical returns and divide by how many there are. The proper way to calculate ...

A. M. Fink and Max Jodeit, Jr. It is shown that the arithmetic mean of $x_1 w_1,\ldots, x_n w_n$ exceeds the geometric mean of $x_1,\ldots, x_n$ unless all the $x$'s ...

This post explains how to calculate Weighted Average in Excel with percentages. In a standard arithmetic average where the sum of values is divided by the number of values, each data value is treated ...

Arithmetic Asian options are difficult to price and hedge as they do not have closed-form analytic solutions. The main theoretical reason for this difficulty is that the payoff depends on the finite ...