In the most recent four years, an investment has produced annual returns of 4%, -1%, 6%, and 3%. The most appropriate estimate of the next year's return, based on these historical returns, is the:

In the most recent four years, an investment has produced annual returns of 4%, -1%, 6%, and 3%. The most appropriate estimate of the next year's return, based on these historical returns, is the:

In the most recent four years, an investment has produced annual returns of 4%, -1%, 6%, and 3%. The most appropriate estimate of the next year's return, based on these historical returns, is the:



A) geometric mean.


B) harmonic mean.


C) arithmetic mean.



Answer: C


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