…Debate! Geometric would have cost you a lot of points on the 03 exam…

I want to say incorrect b/c I always see them list both.

Haligonian, What’s the context? I don’t have the 2003 exam, but I’m curious…

Sure, in one question we calculate a return. Another section we must use that return to differntiate between various portfolio (all quite close to each other in % terms), anyways the right answer was the portfolio which was like 2 or 3 bps above the arithmetic measure, but like 10 below geometric (which I used). Hence, had you used gemoetric as I did and crossed that portfolio out, you we’re f’ed