Consider an investment fund with the following annual return rates over 8 years: +6%, -6%, +12%, -12%, +3%, -3%, +9%, -9% .
What can you say about the annual geometric and arithmetic mean returns of this investment fund?
The arithmetic mean return is zero and the geometric mean return is negative
The arithmetic mean return is negative and the geometric mean return is zero
The arithmetic mean return is equal to the geometric mean return
None of the above
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