Arithmetic average and geometric average

User Generated

uqoeragf

Business Finance

Description

What is the arithmetic average of 12%, 14%, -20% (that’s negative 20) and 10%?  What is the geometric average? 

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Explanation & Answer

12%, 14%, -20% (that’s negative 20) and 10%? 

(12+14_-20+10)/4

16/4

Geometric average is 4

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