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Geometric mean return

Felix edited this page Jun 6, 2014 · 1 revision

For the last three years, the returns for Acme Corporation common stock have been -5%, 11%, and 9%. Compute the compound annual rate of return over the 3-year period.

geometric.mean(r = c(-0.05, 0.11, 0.09))
[1] 0.04751