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Learn about what the geometric mean is and how to use it. Great Historical Microsoft Stock Price Example.
Topics:
1. (00:00) Introduction
2. (00:37) Define Geometric Mean
3. (01:09) Look at variable in the formulas for calculating Geometric Mean
4. (01:30) Look at Microsoft Historical Data Set
5. (02:30) % Change / Growth Rate variable and how to calculate it.
6. (03:35) Growth Factor variable and how to calculate it
7. (03:57) How to use a Growth Factor
8. (05:08) What Geometric Mean can do
9. (05:40) Two Different Formulas for Geometric Mean
10. (06:12) Number of Periods formulas, two methods
11. (07:02) Geometric Mean formula when you are given a column of growth rates / % change amounts
12. (07:02) Calculate Geometric Mean (rate method) with Math Formula
13. (07:25) Reminder from Algebra about calculating roots with exponents
14. (08:32) How to use Geometric Mean (Average Compounding Rate per Period) to calculate the End Amount from a Begin Amount Over Multiple Equal Size Periods
15. (09:28) How to use Geometric Mean in conversations
16. (09:41) Calculate Geometric Mean (rate method) with Excel GEOMEAN function
17. (10:10) Geometric Mean formula when you are given the begin amount, the end amount and the number of periods
18. (10:10) Math Formula for begin-end method Geometric Mean calculation
19. (10:58) Excel RRI function for begin-end method Geometric Mean calculation
20. (12:02) Why you NEVER use Mean to calculate the average with growth rates / % change numbers
21. (12:50) Investment example #2
22. (13:48) Population Growth example
23. (14:46) Summary
24. (15:36) Conclusion and Video Links