Question: Using single-period arithmetic returns, and starting with $100, calculate: (a) a 50% gain followed by a 25% loss (average 12.5% per period gain) (b) a

Using single-period arithmetic returns, and starting with $100, calculate: (a) a

Using single-period arithmetic returns, and starting with $100, calculate: (a) a 50% gain followed by a 25% loss ("average" 12.5% per period gain) (b) a 10% gain followed by a 10% gain ("average" 10% per period gain) What is the difference (a minus b)

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