Calculate the annual arithmetic mean and geometric mean return on the following security, and state which method

Question:

Calculate the annual arithmetic mean and geometric mean return on the following security, and state which method is more appropriate for the situation: purchase price = $30; first-year = $5; price after one year = $35; second-year = $5; selling price after two years = $28.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...