The arithmetic mean for financial returns is defined as: = = EN=1 (ri) The geometric mean for financial returns is defined as: 7s = {1%, (1+r)*}-1 Mickey earns the following historical annual returns on an investment: Year Observed return 1 20% 2 -20% Part A) Compute the arithmetic mean return and the geometric mean return. Express your answers as percentage returns. [2 points] Part B) Which mean would be more appropriate for conveying the typical returns generated by the investment in each period of the observed history? Explain your answer. [4 points) Part C) Which mean would be more appropriate for forming expectations about the expected return of the investment in the next period? Explain your answer. [4 points]