Suppose you observe the prices {5, 4, 5, 6, 5}. What are the arithmetic and geometric averages?

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Suppose you observe the prices {5, 4, 5, 6, 5}. What are the arithmetic and geometric averages? Now you observe {3, 4, 5, 6, 7}. What are the two averages? What happens to the difference between the two measures of the average as the standard deviation of the observations increases?
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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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