Calculate the geometric mean return for the following data set: (Negative value should be indicated by a minus sign. Round your intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

Question

−7% 8% −9% 6.7% 7.1%

Answer 1

To calculate the geometric mean return, we need to multiply all the returns together and then take the nth root, where n is the number of returns.

So, we have:
(-7%)(8%)(-9%)(6.7%)(7.1%)

Using a calculator or spreadsheet, we can calculate this to be -2.71461%.

Rounding this to 2 decimal places, the geometric mean return is -2.71%.