Answer: Geometric average return would be 0.10% and arithmetic average return would be 9.17%.
Step-by-step explanation:
Since we have given that
Returns are as follows:
7%, 25%, 175, -13%, 25% and -6%.
Geometric return is given by
![\sqrt[6]{(1+0.07)(1+0.25)(1+0.17)(1-0.13)(1+0.25)(1-0.06)}-1\\\\=\sqrt[6]{(1.17)(1.25)(1.17)(0.87)(1.25)(0.94)}-1\\\\=0.097\%=0.10\%](https://tex.z-dn.net/?f=%5Csqrt%5B6%5D%7B%281%2B0.07%29%281%2B0.25%29%281%2B0.17%29%281-0.13%29%281%2B0.25%29%281-0.06%29%7D-1%5C%5C%5C%5C%3D%5Csqrt%5B6%5D%7B%281.17%29%281.25%29%281.17%29%280.87%29%281.25%29%280.94%29%7D-1%5C%5C%5C%5C%3D0.097%5C%25%3D0.10%5C%25)
Arithmetic average return would be

Hence, geometric average return would be 0.10% and arithmetic average return would be 9.17%.