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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
Sep
Sep
Sep
Oct
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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