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NEW QUESTION: 2
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A. If the geometric mean is negative, it means that the arithmetic mean must also be negative.
B. The geometric mean return is a more appropriate measure of return compared to the arithmetic mean return.
C. If the arithmetic mean returns is positive, it implies that the return over the entire period is positive.
Answer: B
Explanation:
Counter example for the two untrue statements: return of -90%, +50%, +50% gives a total return of -77.5%

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