calculate geometric return on BAII+

CFA Level I
#1

Is there a quick way to calculate geometric return on the BAII+ calucaltor?

#2

oh yes there is…

keys are

(final value / initial value)

y^x key

enter n years (periods)

hit 1/x

e.g

150/110

= 1.36363

y^x

5

1/x

=

1.063995

so 6.4% approx

#3

Oh sorry, I meant like geometric mean of a number of returns.

eg I have return of 12% in year 1, 13% in year 2, 15% in year 3 and 9% in year 4.

Instead of doing 1.12*1.13*1.15*1.09 and then power it to 1/4 and then subtract one from it.

Is there a for me just to enter 12 13 15 and 9 to get the geometric mean of the returns?

#4

I doubt it.

It would be distinctly weird.

#5

Yeh, if you need a CAGR (%) you proceed like cpk123 has said. If you need a geometric return you need to press the keys necessary (which is not much complicated I think).

#6

What is CAGR? Is it in CFA level1?

#7

_ C _ompound _ A _nnual _ G _rowth _ R _ate

A synonym for annual geometric mean return.