Harmonic Average

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".

BREAKING DOWN 'Harmonic Average'

Alternately, the harmonic average could be thought of as the reciprocal of the arithmetic mean of inverse values.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. The ABC Global mutual fund exhibited the following rates of return over the last ...

    The correct answer is: a) Arithmetic Mean = (15 + -7 + 6.5 + -11.3 + 32.7)/5 = 7.18% Geometric Mean =[(1.15 x 0.93 x 1.065 ... Read Answer >>
  5. How can investors benefit by understanding geometric means?

    Discover why investors should know the difference between geometric and arithmetic means, and why the geometric mean is more ... Read Answer >>
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