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Geometric Return
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The geometric return is calculated by adding 1 to each periodic return, multiplying these values together, taking the nth root of the product and subtracting 1. It is also called the constant rate of return because an investment compounding at the geometric return will grow to the same value that the actual returns produced. The geometric return is approximately equal to the arithmetic return less one-half the variance of the returns. See also Variance Drain.
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