Proper Geometric Mean in Excel
Learn how to calculate a proper Geometric Mean of stock returns in which negative rates of return can be included. I cover another of the many Excel nuances that Finance and Statistics personnel are presented with. I cover the Geometric Mean formulae, appropriate adjustments, and a way in which you can maniuplate Excel’s GEOMEAN function to your advantage. I hope you enjoy this and I hope this will reinforce the fact that we should always double-check what Excel’s built-in functions are actually calculating to make sure that such functions are suitable for users’ needs!
Download the Geometric Mean Formulae Word 2007 document.
Download the Geometric Mean of Stock Returns Excel 2007 document.