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how to calculate geometric mean return on ba ii plus. You should see X01 on the screen. So Im having some trouble getting the correct answer to the following problem in the level 1 reading.
Calculating Geometric Mean Return With The Ba Ii Plus 300hours Forum from forum.300hours.com
The Arithmetic mean will be 15 160 30 20 4 1654 4125. First add 1 to each return. 15 -5 10 15 3.
Where R1 R2 and Rn are sub-period returns for period 1 2 and n respectively and.
N is the total number of sub-periods for which return is available. Year 2 115 160 260 184 115184 299. This is equivalent to raising 19500 to the 15-th power. To calculate compounding interest using the geometric mean of an investments return an investor needs to first calculate the interest in year one which is 10000 multiplied by 10 or 1000.
