Page 51 - FINAL CFA SLIDES JUNE 2019 DAY 2

LOS 8.e: Calculate and interpret measures of central Session Unit 2:
tendency, including the population mean, sample mean, 8. Statistical Concepts and Market Returns
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.