DEFINITION of 'Harmonic Average'
The mean of a set of positive variables. Calculated by dividing the number of observations by the reciprocal of each number in the series.
Also known as "harmonic mean".
Next Up
BREAKING DOWN 'Harmonic Average'
Alternately, the harmonic average could be thought of as the reciprocal of the arithmetic mean of inverse values.
RELATED TERMS

PriceEarnings Ratio  P/E Ratio
The PricetoEarnings Ratio or P/E ratio is a ratio for valuing ... 
Median
The middle number in a sorted list of numbers. To determine the ... 
Arithmetic Mean
A mathematical representation of the typical value of a series ... 
Geometric Mean
The average of a set of products, the calculation of which is ... 
Trimmed Mean
A method of averaging that removes a small percentage of the ... 
Mode
A statistical term that refers to the most frequently occurring ...
Related Articles

Active Trading Fundamentals
Simple Moving Averages Make Trends Stand Out
The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trendspotting tool. 
Active Trading Fundamentals
Weighted Moving Averages: The Basics
We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average. 
Term
How Market Segments Work
A market segment is a group of people who share similar qualities. 
Active Trading
Market Efficiency Basics
Market efficiency theory states that a stock’s price will fully reflect all available and relevant information at any given time. 
Fundamental Analysis
5 Basic Financial Ratios And What They Reveal
Understanding financial ratios can help investors pick strong stocks and build wealth. Here are five to know. 
Investing
What Investors Need to Know About Returns in 2016
Last year wasn’t a great one for investors seeking solid returns, so here are three things we believe all investors need to know about returns in 2016. 
Economics
The Basics Of Business Forecasting
Whether business forecasts pertain to finances, growth, or raw materials, it’s important to remember that a forecast is little more than an informed guess. 
Economics
Forces Behind Interest Rates
Interest is a cost for one party, and income for another. Regardless of the perspective, interest rates are always changing. 
Markets
The (Expected) Market Impact of the 2016 Election
With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election. 
Investing
New Year, New Investing Strategy: Exploring ETFs
Whether you’re a seasoned investor or new to the markets, you need to learn as much as you can about the present environment and how to navigate it.
RELATED FAQS

What is the weighted average of outstanding shares? How is it calculated?
The amount of shares outstanding in a company will often change due to a company issuing new shares, repurchasing and retiring ... Read Full Answer >> 
What is the difference between a simple moving average and an exponential moving ...
The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used ... Read Full Answer >> 
What's the difference between the Dow Jones Industrial Average and the S&P 500?
The major difference between these two indexes is that the Dow Jones Industrial Average (DJIA) includes a priceweighted ... Read Full Answer >> 
What is finance?
"Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >> 
What is the difference between positive and normative economics?
Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic ... Read Full Answer >> 
Do plane tickets get cheaper closer to the date of departure?
The price of flights usually increases one month prior to the date of departure. Flights are usually cheapest between three ... Read Full Answer >>