Name
GEOMEAN
Synopsis
You can use GEOMEAN to determine the geometric mean for a range of positive numeric values. The geometric mean is typically used when working with rate of returns. For example, you may want to find the average rate of return for an investment that earns a different rate each year. This is different than finding the arithmetic mean because, as each rate is applied, the base amount grows.
To Calculate
=GEOMEAN(Number1,Number2, ...)
There must be at least one Number argument
specified and all arguments must be positive.
Example
Figure 15-19 illustrates how GEOMEAN is used to determine the average rate of return over a series of years.
Figure 15-19. Use GEOMEAN to determine the average mean based upon the changes in the base amount
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