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Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price = $ 2 5 ; first - year dividend =
Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price $; firstyear dividend $; price after one year $; secondyear dividend $; selling price after two years $Round intermediate calculations to decimal places, eg and the final answers to decimal places, eg
Arithmetic average return
Geometric mean return
State which method is more appropriate for the situation.
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