Reading 2.2 said Geometric mean is used to calculate the investment return over multiple periods , while reading 34 (Equity) also talks about compounding returns over the whole periods. But there is a different with the formulas of which the geometric mean has the n root. I am confused. Can anyone help? Thank you.

Taking the *n*^{th} root gives you the return * per period*; without taking the

*n*

^{th}root you get the

*.*

**total return for all periods together**Ten percent per year vs. 94.87% for seven years.

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I got it. Thank you so much.