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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