Arithmetic Mean

Filed Under » ,
Dictionary Says

Definition of 'Arithmetic Mean'

A mathematical representation of the typical value of a series of numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series.

Arithmetic mean is commonly referred to as "average" or simply as "mean".
Investopedia Says

Investopedia explains 'Arithmetic Mean'

Suppose you wanted to know what the arithmetic mean of a stock's closing price was over the past week. If during the five-day week the stock closed at $14.50, $14.80, $15.20, $15.50, and then $14.00, its arithmetic mean closing price would be equal to the sum of the five numbers ($74.00) divided by five, or $14.80.

Related Video for 'Arithmetic Mean'

Articles Of Interest

  1.

    Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.

  2. How To Calculate Your Investment Return

    How much are your investments actually returning? Find out why the method of calculation matters.

  3. How are moving averages used in trading?

    Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages is to smooth price data so traders can be in a better position to gauge ...

  4. What is the difference between a simple moving average and an exponential moving average?

    The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used in its calculation. More specifically, the exponential moving average ...

  5. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

    Whether you are using the 50-day, 100-day or 200-day moving average, the method of calculation and the manner in which the moving average is interpreted remain the same. A moving average is simply ...

  6. Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.

  7. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  8. When To Short A Stock

    Learn how to make money off failing shares.

  9. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.

  10. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center