To calculate the annualized portfolio return divide the final value by the initial value then raise that number by 1n where n is the number of years you held the investments. The geometric mean return calculates the average return for the investments which are compounded on the basis of its frequency depending on the time period and it is used to analyze the performance of investment as it indicates the return from an investment. Where R1 R2 and Rn are sub-period returns for period 1 2 and n respectively and.
In this tutorial you will learnHow to Calculate Arithmetic Mean Average Median and Mode.
Geometric Mean Return Formula r rate of return n number of periods. You may also look at the following articles to learn more Calculator For Required Rate of Return Formula. In this case the median is the arithmetic mean average of the two middle values. Hence the Geomean of 30000 and 33000 is calculated as.