Question: Compute the arithmetic average return and compute the geometric average return. Year 1 Year 2 Year 3 Year 5 Year 4 1 0 % 2

Compute the arithmetic average return and compute the geometric average return.
Year 1
Year 2
Year 3
Year 5
Year 4
10%
25%
-8%
7%
9%
ANSWER:
5%(arithmetic); 4.3%(geometric)

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