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.


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fronty
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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" wrote in
message ...

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.
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HTH. :)
Dana DeLouis
Windows XP, Office 2003


"fronty" wrote in
message ...

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