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

Reciprocal Insurance Exchange
A form of insurance organization in which individuals and businesses ... 
Sectoral Reciprocity
A trade agreement between two countries to reduce or eliminate ... 
Reciprocal Currency Arrangement
Temporary arrangement between central banks to maintain a supply ... 
Reciprocal Statutes
Legislation enacted between two or more states promoting commerce. ... 
Arithmetic Mean
A mathematical representation of the typical value of a series ... 
Mean
The simple mathematical average of a set of two or more numbers. ...
Related Articles

Economics
Calculating the Arithmetic Mean
The arithmetic mean is the average of a sum of numbers. 
Professionals
Basic Statistical Calculations
CFA Level 1  Statistical Concepts And Market Returns  Basic Calculations 
Investing
Using Fibonacci to Analyze Gold (GLD, GC)
Use Fibonacci studies to analyze gold by picking out hidden harmonic levels that can provide major support or resistance. 
Investing Basics
Breaking Down The Geometric Mean
Understanding portfolio performance, whether for a selfmanaged, discretionary portfolio or a nondiscretionary portfolio, is vital to determining whether the portfolio strategy is working or ... 
Trading Strategies
How To Make The Most of Fibonacci Grids (VDSI, GLW)
Build your Fibonacci skills by finding the longest price swing on your chart of interest and placing a grid over the trend. Repeat at shorter intervals. 
Professionals
Foreign Exchange
CFA Level 1  Foreign Exchange Basics. Contrats the indirect and direct methods of quoting foreign exchange rates. Provides example calculations in currency conversions. 
Professionals
Characteristics of Security Indexes
CFA Level 1  Characteristics of Security Indexes. Learn the characteristics behind security indexes. Examine three weighting schemes, including the formulas and biases for each. 
Professionals
Variable Contracts
FINRA Series 6: Section 11 Variable Contracts 
Forex Education
2. Calculate The Average Monthly Range
Learn how to make better options trades with the average monthly range. 
Professionals
The Money Market
Series 62
RELATED FAQS

What is the difference between arithmetic and geometric averages?
An arithmetic average is the sum of a series of numbers divided by the count of that series of numbers. If you were asked ... Read Answer >> 
Can two numbers have the same arithmetic and geometric means?
Learn about the often complicated relationship between the geometric mean and arithmetic mean for a set of numbers, and which ... Read Answer >> 
What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
What is a geometric mean in statistics?
Learn what the geometric mean is in statistics and how it is used to calculate various growth rates and returns by financial ... Read Answer >> 
How do you calculate the geometric mean to assess portfolio performance?
Learn how to calculate the geometric mean. Understand when the geometric mean should be used and how it differs from the ... Read Answer >> 
How is the rule of 70 related to the growth rate of a variable?
Find out more about the rule of 70, what it is used for and how it is related to the growth rate of a variable. Read Answer >>