Steven has an investment with the following annual returns for four years:
o Year 1: 9.5%
o Year 2: -3%
o Year 3: 5%
o Year 4: 11%
What is the Arithmetic Mean (AM) and what is the Geometric Mean (GM)?
AM = 5.75%, GM = 5.48%.
AM = 5.75%, GM = 6.21%.
AM = 5.63%, GM = 5.48%.
AM = 5.63%, GM = 6.21%.