Over 700 finance terms, Shmooped to perfection.
Geometric average of the total returns annually of an investment - that is, asset appreciation plus dividends or other distributions in cash and/or stock. This method of evaluating returns misses the volatility of the investment - did it double then get cut 80% then go up a lot at the end of the year? Or was it Milwaukee Ski Slope flat and nicely boring during the year? Most investors who don't like the taste of Pepto-Bismol prefer the latter.