Formula to Calculate Geometric Mean Formula for Geometric Mean For GM formula multiply all the n numbers together and take the nth root of them. If the logarithms in step 1 are common base 10 logs then the geometric mean in step 3 is computed by taking 10. How to Find the Mean The mean is the average of the numbers.
So the geometric mean for the above 10 stock would be 1 1 1 - 5 1 2 5 1 1 1 0.
Take the square root for two numbers. The geometric mean is more accurate than the arithmetic mean because it accounts for compounding. It doesnt matter what logarithm base you use so long as you are consistent. Compute the antilog of the mean.