What is the definition of "Mean Annual Return" in Yahoo Finance?

What is the definition for "Mean Annual Return" in Yahoo Finance?

The words lead me to believe it's an arithmetic mean of annual returns over a period (e.g. 3Y). But the values just don't make any sense to me.

Taking VOO as an example, it says the 3Y Mean Annual Return is 0.88. This value isn't denoted with a percentage and looks really different compared to both the

  1. 3Y arithmetic average return: (0.2178 + 0.1193 + 0.0135) / 3 = 0.1167
  2. 3Y geometric average return (trailing return): 0.1053
 

Hi leveragedlemur, any of these threads helpful:

If we're lucky, the following users may have something to say: AlexCook andyhkt Larrysellars

Hope that helps.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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