Question: Calculate the Arithmetic Mean and Geometric Mean using the total returns of the 6 periods show in the table below. Explain the difference between both

  1. Calculate the Arithmetic Mean and Geometric Mean using the total returns of the 6 periods show in the table below. Explain the difference between both means and why they yield different results, and what each one is used for (5 marks).

Period

1

2

3

4

5

6

Total Return

11.1%

-3.2%

15.2%

22.6%

-12.8%

2.9%

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