Geometric Mean (example question)

Related BrainMass Solutions

• Arithmetic mean / geometric mean

  Same data as prior question: What was your geometric mean annual yield for the investment in X-Tech?

• Geometric mean root observation

  To get the geometric mean take the nth root of the PRODUCT of n observations. For example: An experiment yields the following data: 34,27,45,55,22,34 To get the harmonic mean How many items? There are 6.

• Finding mean and standard deviation of returns

  Solutions depict the steps to estimate the arithmetic mean, geometric mean and standard deviation in the given case. Calculations are carried out with the help of suitable built-in functions in MS Excel.

• Difference between arithmetic average versus geometric average

  When we are dealing with return data, percentages or growth rates geometric mean is correct. Arithmetic mean gives us a wrong picture. Thus, stock's past performance should be measured by using geometric mean. Example.

• Geometric Mean

  What is the geometric mean annual increase for the period. I tried doing this question but I calculated this question and some examples in the chapter but my answer is close to all examples but not exact.

• Value of Portfolio

  300941 Value of Portfolio Question 1: You invested $10,000 eight years ago. The arithmetic average is 10.9% and the geometric average return is 10.5%. What is the value of your portfolio today?

• Stock Valuation

  For the dividends, calculate the a-arithmetic average annual growth rate, and b-geometric mean growth rate. 3.

• Geometric Mean Rate of Increase

  Geometric mean is calculated by this formula: Here you have X = 3% for all years 1 to 10 So you geometric mean = So the geometric mean is the same as the annual rate.

• Finding Geometric mean

  199200 Finding Geometric mean Compute the geometric mean of the following percent increases: 2, 8, 6, 4, 10, 6, 8, and 4. If we have data a1, a2, ----an Then geometric mean = nth root of product of all the data numbers.