I need to calculate the geometric average of returns on stocks.
I looked at the definition of geomean and it will not work for me. I need to use this formula.
Rgeo={[(1+R1)(1+R2)....(1+Rn)]}^(1/n) -1
Any help would be greatly appreciated.
I need to calculate the geometric average of returns on stocks.
I looked at the definition of geomean and it will not work for me. I need to use this formula.
Rgeo={[(1+R1)(1+R2)....(1+Rn)]}^(1/n) -1
Any help would be greatly appreciated.
Add a helper column to calculate 1 + R1, 1+ R2, ETC.
Let's say that your data is in R1, R2, R3 to R10 for this example.
Create Q1-Q10
Q1:R1+1
Copy to Q10
Q11: =product(Q1:Q10)^(1/10)-1
"fronty" <[email protected]> wrote in
message news:[email protected]...
>
> I need to calculate the geometric average of returns on stocks.
>
> I looked at the definition of geomean and it will not work for me. I
> need to use this formula.
>
> Rgeo={[(1+R1)(1+R2)....(1+Rn)]}^(1/n) -1
>
> Any help would be greatly appreciated.
>
>
> --
> fronty
> ------------------------------------------------------------------------
> fronty's Profile:
> http://www.excelforum.com/member.php...o&userid=33530
> View this thread: http://www.excelforum.com/showthread...hreadid=533217
>
Hi. If v represents the Range A1:A10, then the following two Array Formulas
appear to work ok.
=POWER(PRODUCT(v+1),1/10)-1
=GEOMEAN(v+1)-1
Enter w/ Ctrl+Shift+Enter.
--
HTH. :>)
Dana DeLouis
Windows XP, Office 2003
"fronty" <[email protected]> wrote in
message news:[email protected]...
>
> I need to calculate the geometric average of returns on stocks.
>
> I looked at the definition of geomean and it will not work for me. I
> need to use this formula.
>
> Rgeo={[(1+R1)(1+R2)....(1+Rn)]}^(1/n) -1
>
> Any help would be greatly appreciated.
>
>
> --
> fronty
> ------------------------------------------------------------------------
> fronty's Profile:
> http://www.excelforum.com/member.php...o&userid=33530
> View this thread: http://www.excelforum.com/showthread...hreadid=533217
>
There are currently 1 users browsing this thread. (0 members and 1 guests)
Bookmarks