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Use of returns could be both arithmetic regular or geometric average but geometric average is more suitable then arithmetic typical as arithmetic average is reflecting uncomplicated return more than a timeframe on initial expenditure, no matter the funds attain from time period to period. However, geometric average displays compound return, that makes equilibrium of financial investment worth of past year a basic principle foundation for calculation of future year’s return i.

To select which of your respective various cases will be the best match for a study, examine them and Consider whether they comprise the following aspects:

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