1. Consider an investment held over three years with a return of +20percent in the first year, 15percent in the second year, and +25 percent in the third year. What are the arithmetic mean return and geometric return on the investment?
2. 10.0%/9.2%
3. 10.0%/8.4%
4. 10.0%/27.5%
5. 5.0%/3.2%