Question: Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making.

Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making.
The arithmetic average assumes -Select-compounding or interest-on-interestthe presence of simple interestItem 1, while the geometric average assumes -Select-compounding or interest-on-interestthe presence of simple interestItem 2.

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