Excel Finance Class 97: Using Geometric Mean & Arithmetic Mean to Estimate Future Returns

See how to take past stock value data and then calculate Geometric Mean with Arithmetic Mean to Estimate Future Returns

[vishnu]

I was scratching my head trying to figure out geometric mean in excel because it doesn't take negative value and then coming to the rescue like always...your video was there!!11 years and counting but still afresh.👏 Your legacy is indelible

[vxxvxx]

This just helped me a TON with an online assignment, Thank You!

[bevanc]

I honestly couldn't find anything in a google search on this aside from your video! Thanks so much

[misszara]

Almost 9 years later and this was really helpful - thank you!

[quangvinhluu]

this exactly what I need for my quizz. Thank you

[TeamDones]

Terrific video on stock returns. I have been searching the internet for months for a method to calculate stock return using dividends and this video has everything needed to do this. I love your videos. Thank you for the easy to understand way they are presented.

[ankitkapur]

11 years, and it solved a complex problem that appears to be simple but is not.

[vanderdst]

Hi There, thank you so much for this class. I was going crazy with the Geometric Mean and when I applied the SUMPRODUCT together the result came out correct.

[jazminesmith]

Thank you so much! This was incredibly helpful!!!

[bhaskarbansal]

Hey thanks for this wonderful video!
Finally got the correct material of what I was looking for, after a very long browsing.

[dr.ferojuddinkhan]

All good, refer to column C where you wrote % change, it should be just change, not %.

[Satoshi_Nakamotooooo]

Which is better to use arithmetic or geometric

[kianfayazbakhsh]

Thanks for the video! If we have stock returns should we calculate the arithmetic mean based on that or first we should calculate the excess return and then based on that we can find the arithmetic mean?

[WalterZelhofer]

I don't follow why you are compounding the arithmetic mean. The geometric mean is, by definition equal to (FV/PV)^(1/t)-1 where FV is future value and PV is present value. Therefore, only the geometric average could be used in that fashion.

[gabrielatrantova]

Hi thanks for this video. I t was very good to see the differences how to calculate the average however we still struggle with our work how to calculate market risk premium per year vs. weekly. Would be possible to get in touch and get advice?

[hlpatwa]

Hey, I really liked the video but I did not understood the excel function of sum product with respect to geometric mean.... I mean why did you use the sum product formula?

[nadyatamaradewi]

Hi sorry may I ask, why I still find #Num, with the same step? 🙏🏻

[zeevo]

so basically, it's just adding 1 at the returns and then for their geo mean, -1 in order to avoid number error? how about if the returns has more than -1? let's say...negative 9? can i use +10 for the returns column and then -10 when computing its geo mean?

[ne]

i still do not get how the sumproduct(geomean) works

[brianwittekind]

Why isn't the dividend factored in to the beginning value. If your going to do End + dividend / Beginning wouldn't it be End + dividend/ beginning + dividend. Someone please explain