Definition
The "geometric mean" is a special kind of average, particularly useful for rates of change or growth. Instead of adding numbers, you multiply them, then take the nth root (where n is the number of values). It's commonly used in finance to calculate average investment returns. It's different from the arithmetic mean, which can be misleading with percentages. The geometric mean provides a more accurate picture of overall performance. It's a key concept in understanding growth rates and financial returns.