Question: Using single-period arithmetic returns, calculate the value after two periods for the realized returns of these two portfolios: (Portfolio A) $100 invested, realizing a period

Using single-period arithmetic returns, calculate the value after two periods for the realized returns of these two portfolios: (Portfolio A) $100 invested, realizing a period with a 10% gain, followed by another period with a 10% gain ("average" 10% per period gain) (Portfolio B) $100 invested, realizing a period with a 50% gain, but followed by a period with a 25% loss ("average" 12.5% per period gain) What is the difference in dollars after these two periods

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