I. Given the following set of returns over 6 years: (-10%, 30%, -10%, 30%, -10%, 30%). Compute:
1. The arithmetic mean______
2. The geometric mean_______
3. The approximate geometric mean ______.
4. How do the actual and geometric means compare?
II. Given the following set of returns over 4 years: (11%, -5%, 13%, -1%). Compute:
1. The arithmetic mean______
2. The geometric mean_______
3. The approximate geometric mean ______.
4. How do the actual and geometric means compare?