### Excel Template with Geometric Linking

##### Excel has a function called PRODUCT, which actually allows you to highlight the series of returns and it will multiply them together (step 3 above).  This is what Performance Analysts typically use to geometrically link.  But BE CAREFUL, this function is considered an “array formula” and you need to press Shift + Control + Enter when you leave the cell.  If you go into the cell and then leave it by pressing Enter only, it will give you the wrong result.  In the below template I show how the formula is used.

Note: the excel document is locked but you can save a copy and then edit as you like.

#### So what would happen if we just add the 2 monthly returns together to get the 10% return?

##### For an explanation on how to calculate the average annual return from the compounded return, please read my post on cumulative and annualized returns.

Insert math as
$${}$$