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You observe the following sequence of weekly prices and returns for ABC stock: Week Price Return 1 0 - Sep - 2 3 6 8

You observe the following sequence of weekly prices and returns for ABC stock:
Week Price Return
10-Sep-2368000
17-Sep-2362500-8.09%
24-Sep-237000012.00%
1-Oct-23724003.43%
a) What is the arithmetic average weekly return over these three weeks?
b) What is the geometric average weekly return over these three weeks?
c) Explain the usefulness of both the arithmetic and geometric average returns.

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