Geometric Mean vs Geometric Mean Return
I understand to to analyze past return data of a portfolio we will always use the Geometric Mean Return but when do we ever use the general Geometric Mean formula? I am trying to understand when to use either of these and what is the difference in the application of either.
If there is a negative return, mathematically I understand the regular formula wouldn’t make sense. In what cases then would we ever use the general formula and not the Geometric Mean Return?
Thanks in advance!
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