Question: Consider an investment held over three years with a return of +20 percent in the first year, 15 percent in the second year, and +25

Consider an investment held over three years with a return of +20 percent in the first year, 15 percent in the second year, and +25 percent in the third year. What are the arithmetic mean return and geometric return on the investment?

10.0%/9.2%

10.0%/8.4%

10.0%/27.5%

5.0%/3.2%

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