Is there a quick way to calculate geometric return on the BAII+ calucaltor?
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
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?
I doubt it.
It would be distinctly weird.
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).
What is CAGR? Is it in CFA level1?
_ C _ompound _ A _nnual _ G _rowth _ R _ate
A synonym for annual geometric mean return.