Because the simple arithmetic average return does not consider compounding,its value is always less than or equal to the geometric average return.

Name: Because the simple arithmetic average return does not consider compounding,its value is always less than or equal to the geometric average return.
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Quizplus · Accepted Answer

The statement is incorrect. The geometric average return is always less than or equal to the arithmetic average return because the geometric average includes the effects of compounding.

Because the Simple Arithmetic Average Return Does Not Consider Compounding,its