How To Calculate Geometric Mean For Negative Returns Complete Guide

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how to calculate geometric mean for negative returns. Number1 is required subsequent numbers are optional. 1 x 5 x 10 x 13 x 30 19500 and then calculate the 5-th root of 19500 721.

Geometric Mean Gm Formula Solved Example Problems
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Calculating Geometric Mean with Logarithms 1 Add the logarithmic values for each number in the set. To calculate the geometric mean return we follow the steps outlined below. For financial investment return calculations the geometric mean is calculated on the decimal multiplier equivalent values not percent values ie a 6 increase becomes 106.

The geometric mean return formula is used to calculate the average rate per period on an investment that is compounded over multiple periods.

Geometric Mean Return Formula r rate of return n number of periods It is the average set of products technically defined as the n th root products of the expected number of periods. This is equivalent to raising 19500 to the 15-th power. Import pandas as pd import numpy as np. Just enter the input data separated by a comma in this geometric mean calculator to get the mean result wit ease.