~/ home / finance / glossary / mean

When compared to other measures like median and mode, it can provide
additional context about a distribution.

Beginner

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.

Synonym: average

Click box for answer.

False

**Ann: ***Why does Kay want to change the word *
mean * to average in our
presentation deck?*

**Jim: ***She thinks it sounds too mean.*

Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.

Videos can also be accessed from the YouTube Channel.

If this term had a video, the script would be here.

Our trained humans found other terms in the category
**statistics basics** you may find helpful.

For links to all glossary terms and videos click the Outline button below.

Learn this stuff faster. Subscribe here.

Next, we use mean as part of Mean Variance Optimization . Click Next.

~/ home / finance / glossary / mean

Keywords:

mean

average

central tendency

distribution

statistics

stocks

modeling

weighted mean

robust

outlier