Multiple Choice
Which of the following statements regarding the arithmetic mean and the geometric mean is true?
A) The arithmetic mean is always a better measure of average performance.
B) The geometric mean is always a better measure of average performance.
C) The arithmetic mean is a better measure of performance over single periods.
D) The geometric mean is the best estimate of the expected return for the next period.
Correct Answer:
Verified
Correct Answer:
Verified
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