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how to calculate geometric mean of returns. In other words it is the average return of an investment over time a metric used to evaluate the performance of a single investment or an investment portfolio. Geometricreturn sqrtn 1 r_1 times 1 r_2 times 1 r_3 times.
Arithmetic Mean Vs Geometric Mean from www.investopedia.com
6 R a V 2 V 1 V 1 V 0 12 1. Times 1 r_n - 1. The GEOMEAN function calculates the geometric mean of a set of numbers by returning the nth root of n numbers.
In other words it is the average return of an investment over time a metric used to evaluate the performance of a single investment or an investment portfolio.
The GEOMEAN function calculates the geometric mean of a set of numbers by returning the nth root of n numbers. The average return per year is 493 slightly less than the 5 computed using the. 6 R a V 2 V 1 V 1 V 0 12 1. Hence the Geomean of 30000 and 33000 is calculated as.
