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Find the arithmetic and geometric means of growth rates

Find the arithmetic and geometric means of growth rates: Excel: Analyzing and Visualizing Cash Flows
Find the arithmetic and geometric means of growth rates: Excel: Analyzing and Visualizing Cash Flows

The most common way to find an average of returns on an investment is to add all of the values and then divide by the number of values. That’s the arithmetic average. You can also calculate the growth rate that would lead from the initial value to the ending value over the same number of periods. That measure is the geometric mean.

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