Sign up  |  Log in

Calculating Geometric Mean in Texas BA II Plus

Hello,

Does anybody know how to calculate geometric mean in Texas BAII Plus? Thank you.

Live Online Classes, Lecture Videos, Study Guides, Practice Questions, Mocks and more.

Really simple (Example): Last three yrs, returns for a company’s common stock have been -9.34%, 23.45% and 9.82%. Compute the compound annual rate of return over the three yr period.

1. 1 + R(G) = [(-.0934+1) x (.2345+1) x (.0892+1)]…..multiply all together and you get 1.2190
then to the calculator…
2. 1.2190 [y^x] 0.33333 [=] 1.0682
3. 1.0682 - 1 = .0682 => R(G) = 6.82%

BTW, you can use [1/x] in this case. Like this:
1.2190 [y^x] 3 [1/x] [=]