Page 12 - FINAL CFA SLIDES DECEMBER 2018 DAY 3

Session Unit 2:
8. Statistical Concepts and Market Returns

LOS 8.e: Calculate and interpret measures of central tendency, including the population mean,
sample mean, arithmetic mean, weighted average or mean, geometric mean, harmonic

mean, median, and mode, p.143

Example: Calculating average cost with the harmonic mean: An investor purchases $1,000 of stock each
month, and over the last 3 (=N) months the prices paid per share were (Xi): $8, $9, and $10. What is the

average cost per share for the shares acquired?

For values that are not all equal:

HM < GM < AM.