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    What is the geometric average?

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    Stock XYZ

    Year Return

    2000 10%

    2001 15%

    2002 -20%

    2003 -8%

    2004 11%

    What is the geometric average?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:17 pm ad1c9bdddf
    https://brainmass.com/business/finance/what-is-the-geometric-average-92099

    Solution Preview

    The formula for the geometric average of returns is:

    ( (1 + Ret1) * (1 + Ret2) * (1 + Ret3) * ...) ^ (1/n) - 1
    [the ^ symbol ...

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