3. Arithmetic vs. Geometric Mean What is the arithmetic and geometric average for the following returns? Year 1 4.90% Year 2 -1.95% o Year 3 20.24% o Year 4 -0.64% R1+R2+...+RT Arithmetic average -- T Geometric average: [(1 + R1) (1 + R2) * ...(1 + R2)]-1