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Assume you are making an initial investment of $100,000 on a given security. If the investment pays you $10,000 at the end of the first
Assume you are making an initial investment of $100,000 on a given security. If the investment pays you $10,000 at the end of the first year and $120,000 (including $110, 000 selling price of the security) at the end of second year, what is?
The arithmetic average return?
The geometric average return?
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