- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 2. Organizing, Visualizing, and Describing Data
- Subject 6. Measures of Central Tendency

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**CFA Practice Question**

Which of the following is most likely correct?

A. If the geometric mean is negative, the arithmetic mean must also be negative.

B. The geometric mean return is a more appropriate measure of return than the arithmetic mean return.

C. If the arithmetic mean return is positive, it is implied that the return over the entire period is positive.

**Explanation:**Counter example for the two incorrect statements: return of -90%, +50%, +50% gives a total return of -77.5%

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