" Average Compound Annual Rate of Return"

[IH8FSA]

How would I produce the ” 5 Year Average Compound Annual Rate of Return” for the following returns on excel format:
2008: -12.20 %
2007: -1.37 %
2006: 7.95%
2005: 5.74%
2004: 7.21%

 

[bchad]

Geometric mean of (1+r).

 

[wyantjs]

(.878+.963+1.0795+1.0574+1.0721)^.2
or you could just use the geometric mean function.

 

[IH8FSA]

Thanks guys.
I didnt realize it was just the geometric. I thought it was something else.
Kind regards !

 

[DarienHacker]

wyantjs Wrote:
——————————————————-
> (.878+.963+1.0795+1.0574+1.0721)^.2
>
> or you could just use the geometric mean function.
*, not +