HPY for multiple years years

invic

Hi,

On page 318 in Volume IV, the three year HPY for three annual returns is calculated as R=(1+R1)*(1+R2)*(1+R3)-1

where R1,R2,R3 are the three annual returns.

Is this formula correct? I was thinking that the product of the returns should be raised to (1/3) to calculate it correctly.

Please help if you know the answer! Thanks.