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Utilization of returns is often possibly arithmetic common or geometric typical but geometric normal is more appropriate then arithmetic average as arithmetic ordinary is reflecting uncomplicated return in excess of a stretch of time on Preliminary expenditure, no matter the money achieve from time period to period of time. On the other hand, geometric common reveals compound return, that makes balance of financial commitment price of preceding 12 months a basic principle base for calculation of up coming 12 months’s return i.
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