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Consider the rate of return of stocks ABC and XYZ. Calculate the geometric average returns of each stock. Which average is always lower: geometric average

Consider the rate of return of stocks ABC and XYZ.

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Calculate the geometric average returns of each stock.

Which average is always lower: geometric average or arithmetic average?

Why?

Year Ass XYZ 1 24% 34% 2 10 12 3 17 18 4 4 1 5 1 -9

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