How do the actual and geometric means compare

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Reference no: EM132044297

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?

Reference no: EM132044297

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