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how to calculate geometric mean rate. It is calculated as. Geometric mean return is a more complicated method of calculating the average rate but its more accurate than the arithmetic one.
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Geometric average return can be calculated using the following formula. The geometric mean is. The formula for the geometric mean return is used specifically for investments that are compounded.
11563 x 110 12720.
In order to find the geometric mean multiply all of the values together before taking the n th root where n equals the total number of values in the set. Subtracting 1 from this value gives the geometric mean of 167 as a net rate of population growth or financial return. How to Calculate the Geometric Average The geometric mean for a series of numbers is calculated by taking the product of these numbers and raising it to the inverse of the length of the series. Geometric Mean n-th root of X 1 X 2.
