What is the geometric average?
Stock XYZ
Year Return
2000 10%
2001 15%
2002 -20%
2003 -8%
2004 11%
What is the geometric average?
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Solution Preview
The formula for the geometric average of returns is:
( (1 + Ret1) * (1 + Ret2) * (1 + Ret3) * ...) ^ (1/n) - 1
[the ^ symbol ...
Solution Summary
With good explanations and calculations, the problem is answered.
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