Suppose a particular investment earns an arithmetic return


Suppose a particular investment earns an arithmetic return of 10% in year 1, 20% in year 2 and 30% in year 3. The geometric average return for the year period will be

o greater than the arithmetic average return.

o equal to the arithmetic average return.

o less than the arithmetic average return.

o equal to the market return.

o Cannot tell from the information given

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Financial Management: Suppose a particular investment earns an arithmetic return
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