 # Geometric mean on the TI II Plus calculator

##### Geomentric mean of returns on the Texas Instruments BA II Plus calculator

Hi i’ve been asked how to calculate the geometric mean on the texas instrument be a two plus calculator so i’ve produced this tutorial to demonstrate this i think for most people using this calculator it’s not just the geometric mean of a series of whole numbers it’s more likely to be the geometric mean the series of returns so we’ll use an example to help us over

A five-year period an investment into a euro stocks 50 etf provides the following returns year 1 9% year to 14% year 3 minus 8% year for 3% and year 5 11% so what is the geometric mean of returns over this period firstly we need to take each of the annual returns and convert these to a number that works for compounding over the period because we’re working with

Individual calculations on a series of numbers i think it’s a neat solution to use the memory function in the calculator so to enter the memory worksheet i switch the calculator on and press 2nd memory now we’re in the memory worksheet you can store up to 10 numbers in here of course you can write these on a piece of paper if you would prefer but i find it quite

Simple to use the memory function so press 2nd clear work to make sure that all the work is cleared for any previous calculations and now you want to enter the first number so one add nine percent equals one point zero nine enter that in the first memory storage part down arrow same again one add 14% equals one point one four and enter that in the second storage

Down arrow one add eight and press the plus minus because it’s minus eight percent percent equals zero point nine two enter and then down arrow one and three percent equals and enter that and finally one add eleven percent equals and into that so that gives us each one of the different pieces of data that we want all stored in the memory function so now for the

Next part of the geometric mean calculation we just need to multiply each one of these numbers together so to do that you press recall zero to get the first one times recall one times recall two times recall three times recall four equals now all we need to take is the fifth root of this series of data all multiplied together and then minus one so to take the fifth

Root you press y to the x and enter the number five for the number of data items and then to convert it to the fifth root rather than five squared you press 1 over x equals and minus one equals and that gives you the zero point zero five five or five point five percent which is the geometric mean of the series of data that we were looking at thank you for watching

I hope you found this video helpful have a wonderful day

Transcribed from video
Geometric mean on the TI II Plus calculator By Simon Dixon