Abstract Summary
Through the course of this research, we utilized the geometric mean to discover how it differs from the arithmetic mean. The geometric mean is found by taking the n-th root of the product of n numbers. The geometric mean can be used to determine growth rates, portfolio returns, and stock indices. The focus of this research is utilizing geometric mean to study portfolio returns. This presentation includes a proof to show that the geometric mean of the sampling distribution of the geometric mean is equal to the original geometric mean. These ideas and concepts are utilized in an application of an investment problem, looking at an investment portfolio and seeing if there is a way to estimate the returns with a certain level of confidence.
