Michael has an investment with the following annual returns for four years: Year 1: 12% Year 2:

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Michael has an investment with the following annual returns for four years:

Year 1: 12%

Year 2: -5%

Year 3: 8%

Year 4: 18%

What is the arithmetic mean (AM) and what is the geometric mean (GM)?

a. AM = 8.25%, GM = 7.91%.

b. AM = 8.25%, GM = 10.64%.

c. AM = 10.75%, GM = 7.91%.

d. AM = 10.75%, GM = 10.64%.

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Fundamentals Of Financial Planning

ISBN: 9781936602094

3rd Edition

Authors: Michael A Dalton, Joseph Gillice

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Question Posted: Sep 12, 2024 07:02 AM

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Michael has an investment with the following annual returns for four years: Year 1: 12% Year 2:

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Fundamentals Of Financial Planning

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