Mean is one of several measures of central tendency, representing the center of a distribution. For example, the mean of 10% and 20%, is 15%. It is calculated by taking the sum of the returns divided by the number of observations. Because it is a simple average it can be skewed by outliers.
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Ann: Why does Kay want to change the word
mean to average in our
Jim: She thinks it sounds too mean.
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Next, we use mean as part of Mean Variance Optimization . Click Next.