Question: Calculate the arithmetic average annual return and geometric average annual return for company XYZ given the annual stock returns below. Year Return (Simple Annual) 2012
Calculate the arithmetic average annual return and geometric average annual return for company XYZ given the annual stock returns below.
| Year | Return (Simple Annual) |
| 2012 | 4% |
| 2013 | 9% |
| 2014 | -12% |
| 2015 | 20% |
| 2016 | 6% |
Provide formulas used and work to show how you arrived at the answer.
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