" Average Compound Annual Rate of Return"

CFA General
#1

How would I produce the " 5 Year Average Compound Annual Rate of Return" for the following returns on excel format: 2008: -12.20 % 2007: -1.37 % 2006: 7.95% 2005: 5.74% 2004: 7.21%

#2

Geometric mean of (1+r).

#3

(.878+.963+1.0795+1.0574+1.0721)^.2 or you could just use the geometric mean function.

#4

Thanks guys. I didnt realize it was just the geometric. I thought it was something else. Kind regards !

#5

wyantjs Wrote: ------------------------------------------------------- > (.878+.963+1.0795+1.0574+1.0721)^.2 > > or you could just use the geometric mean function. *, not +