The geometric average of -12%,20% and 25% is _________.
A) 8.42%
B) 11.00%
C) 9.70%
D) 18.88%

Name: The geometric average of -12%,20% and 25% is _________. A) 8.42% B) 11.00% C) 9.70% D) 18.88%
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Question

Quizplus · Accepted Answer

To find the geometric average, multiply the percentages and take the nth root, where n is the number of percentages being averaged. 
So, 
((1-0.12) * (1+0.20) * (1+0.25)) ^ (1/3) = (0.88 * 1.2 * 1.25)^(1/3) 
= 1.042 
= 4.2% increase 
Hence, the answer is C) 9.70%.

The Geometric Average of -12%,20% and 25% Is _________