Purpose – We know that estimates of terminal value of long-term investment horizons are biased. Unbiased estimates exist only for investment horizon of one time-period. The purpose of this paper is to suggest a method based on the arithmetic mean in order to obtain unbiased estimates for the...

Although the geometric mean procedure is very popular among financial analysts, it is shown that when it is applied on rates of returns for evaluating portfolio performance it does not produce efficient results. Valuable past performance information is ignored since the geometric mean procedure...

Portfolio managers favor long-term investment horizons. Their performance is usually forecasted using either the arithmetic mean or the geometric mean. The harmonic mean is generally ignored as an instrument of financial and/or portfolio management. We examine the performance of the harmonic...