In other words it is the average return of an investment over time a metric used to evaluate the performance of a single investment or an investment portfolio. It is calculated as. This is equivalent to raising 19500 to the 15-th power.
In other words it is the average return of an investment over time a metric used to evaluate the performance of a single investment or an investment portfolio.
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 Return Formula r rate of return n number of periods. Geometric mean return is a more complicated method of calculating the average rate but its more accurate than the arithmetic one. Times 1 r_n - 1.