The difference between the arithmetic mean and geometric mean is: there is no difference: they are the same. the geometric mean is a compound growth rate, whereas the arithmetic mean is not. the arithmetic mean is a calculus-based measure, whereas the geometric mean is based in statistics. arithmetic means are more widely used in the scientific fields, whereas geometric means are more often used in business. A portfolio is a collection of: risk profiles. financial assets. capital budgeting projects. various liquors. If assets are the portfolio risk will equal the weighted average of its constituent securities. perfectly positively correlated correlated uncorrelated perfectly negatively correlated