I was solving some PM questions and one thing I cant wrap my head around is when to use the geometric mean formula under the square root and when to use the other one. What type of things am I looking for in the question? What are immediate giveaways?
Please find below the question under question. Thank you for your time all.
Q. The quarterly returns on a portfolio are as follows:
|Quarter||1||. 2||. 3||. 4|
The time-weighted rate of return of the portfolio is closest to: