When, If Ever, Will the Geometric Average Return Exceed the Arithmetic

question 85

Multiple Choice

When, if ever, will the geometric average return exceed the arithmetic average return for a given set of returns?

• A)When the set of returns includes only risk-free rates
• B)When the set of returns has a wide frequency distribution
• C)When the set of returns has a very narrow frequency distribution
• D)When all of the rates of return in the set of returns are equal to each other
• E)Never

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