Calculate the annual arithmetic mean and geometric mean return on the following security, purchase price: $40; first-year dividend - $2; price after one year - $45; second-year dividend - $2; selling price after two years = $38. (Round intermediate calculations to 3 decimal places, eg. 15.251% and the final answers to 2 decimal places, e.g. 15.25%.) Arithmetic average return % Geometric mean return % State which method is more appropriate for the situation. Geometric mean Arithmetic average Attempts: 0 of 3 used Submit