When, if ever, will the geometric average return equal the arithmetic average return for a given set of returns?

Hint: The geometric mean differs from the arithmetic mean in how it's calculated because it takes into account the compounding that occurs from period to period.

Choices:

1)	When the rate of return is constant

2)	When the set of returns includes only risk-free rates.

3)	When the set of returns has a very narrow frequency distribution.

4)	When the set of returns has a wide frequency distribution.