Can someone please confirm this: Market Cap weighted & Unweighted use Geometric means in the computations of HPR Price weighted use arithmetic mean
Can anyone verify?
All 3 use AM. One can apply GM also to Unweighted. Market cap weighted is AM. Direct from name itself - weighted AM based on Market Caps…
thanks a lot.
Value Line and Financial Times OSI are examples of unweighted indexes that use the GM instead of the AM (straight from the curriculum)