Explain the difference between the arithmetic average return you calculated in Problem 10a and the geometric average

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Explain the difference between the arithmetic average return you calculated in Problem 10a and the geometric average return you calculated in Problem 10b. Are both numbers useful? If so, explain why.

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:14 AM

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Explain the difference between the arithmetic average return you calculated in Problem 10a and the geometric average

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The answers are different because the arithmetic average return b...View the full answer

Fundamentals of Corporate Finance

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