Lenny D. answered • 7d

Financial Professional with many years of Wall Street Experience

I think you are looking for the ** Geometric Mean. ** For example, If your Investment made 20% then lost 10% then made 5% You might think you made 5%.

But you will have made (1+20%)(1-10%)(1+5%) = 1.134. the Cube root of 1.134 is 1.0428 so your investment compounded at 4.28%

Lenny D.

6d