Calculating Average Annual Returns from a Series of Annual Returns

[Bruinsfan]

Hello,

I am looking to calculate the average annual return from a series of annual returns using excel. What is the best formula to do it? For example, I have in excel:

2008 2009 2010 2011 Avg Annual
-32% +22% -5% +11% ?

I have researched this and understand geomean function is helpful except that it doesn't work when you have negative returns. You can fix that by converting the percentages to a number like -32% = 0.68 and +22% = 1.22 etc. So I can get the answer using multiple steps but I am sure there is a relatively easy way to do it using the data I have. Any ideas?

Thanks.

[curtjer]

=sum(x:x)/subtotal(2,x:x)

[curtjer]

Or =AVERAGE(X:X)

[FDibbins]

For a proper average, it would be better to add the actual original values that were used to calulate the % in the 1st place, and then use that grand total to work out your average. A % is in effect an average of sorts, so trying to average the %'s the way you want, will give you an average of an average.

[curtjer]

Definitely if you wanted to do weighted average, good point.