Suppose a Particular Investment Earns an Arithmetic Return of 10

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 __________.

A) greater than the arithmetic average return
B) equal to the arithmetic average return
C) less than the arithmetic average return
D) equal to the market return
E) cannot tell from the information given

Correct Answer:

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