What is 'arithmetic average' in SAP EPM-SM - Strategy Management?

arithmetic average - Overview

• Component: EPM-SM

• Component Name: Strategy Management

• Description: A calculation method based on averaging the performance of all KPIs.

arithmetic average - Details

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  Key Concepts: 
  Arithmetic average is a calculation used in SAP Strategy Management (EPM-SM) to measure the performance of a portfolio of investments. It is calculated by taking the sum of all the individual investments and dividing it by the total number of investments. This calculation gives an overall average performance of the portfolio. 
  
  How to use it: 
  In SAP Strategy Management, arithmetic average can be used to measure the performance of a portfolio of investments. To calculate the arithmetic average, first add up all the individual investments and then divide it by the total number of investments. This will give you an overall average performance of the portfolio. 
  
  Tips & Tricks: 
  When calculating the arithmetic average, make sure to include all investments in the portfolio, even those that are not performing well. This will give you an accurate picture of the overall performance of the portfolio. 
  
  Related Information: 
  Arithmetic average is just one way to measure the performance of a portfolio. Other methods include geometric mean, median, and standard deviation.