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

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

• Year 1: -2%
• Year 2: 9%
• Year 3: 15%
• Year 4: 5%

What is the Arithmetic Mean (AM) and what is the Geometric Mean (GM)?

a. AM = 6.12%, GM = 6.57%.

b. AM = 6.12%, GM = 6.02%.

c. AM =6.75%, GM = 6.02%.

d. AM = 6.75%, GM = 6.57%.

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

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Fundamentals Of Financial Planning

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