The geometric average return will always be above the arithmetic average return, and the difference grows with the volatility of the annual returns.

Name: The geometric average return will always be above the arithmetic average return, and the difference grows with the volatility of the annual returns.
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The geometric average return will always be lower than or equal to the arithmetic average return, and the difference between the two will be small unless the returns are highly volatile.

The Geometric Average Return Will Always Be Above the Arithmetic