How To Calculate Geometric Return Complete Guide

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how to calculate geometric return. The formula for calculating the geometric mean is. R rate of return.

3 Ways To Calculate The Geometric Mean Wikihow
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It is calculated as. Katex is not defined Where r is the rate of return and n is the number of periods. Geometric mean takes several values and multiplies them together and sets them to the 1nth power.

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R Return n Count of the numbers in the series beginaligned 1 textR_1 times 1 textR_2 times 1. N number of periods. The geometric mean can be used to calculate average rates of return in finances or show how much something has grown over a specific period of time. R rate of return.