Question: 2. Table 2 shows the annual returns realized on an investment over five years. Table 2 - Returns on an Investment Year Rate of Return

2. Table 2 shows the annual returns realized on an investment

2. Table 2 shows the annual returns realized on an investment over five years. Table 2 - Returns on an Investment Year Rate of Return 1 0.10 2 0.22 3 0.06 4 -0.05 5 0.20 (a) Compute the arithmetic and geometric means for the returns. (b) Which of the two statistics computed in part (a) best describes the return over the 5 year period? Explain your answer. (2 marks) (1 mark)

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