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Example 1 Suppose that you are told that an investment of $1,000 earned a 100 percent return one year, and that the proceeds (i.e., principal

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Example 1 Suppose that you are told that an investment of $1,000 earned a 100 percent return one year, and that the proceeds (i.e., principal and interest) were reinvested in the same asset the next year, earning a 50 percent return and resulting in a cash value at the end of the two years of $3,000. A. Calculate the arithmetic average B. Calculate the geometric average

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