Average Monthly Loss (Loss Mean)

A simple average (arithmetic mean) of the periods with a loss. It is calculated by summing the returns for loss periods (returns < 0), and dividing the total by the number of loss periods.

Average Monthly Loss

Investors who are required to select and monitor investment managers should develop a basic understanding of investment statistics. Quantitative tools can provide you with good insight that you can use in your qualitative interviews with managers and when monitoring your investments.