Geometric Average Return = [(Product of Returns)(1/No of Years)]- 1
Firstly, add 1 to each return and then multiply = 1.08*1.26*1.14*0.83*1.31*0.99
= 1.67
Now, Geometric Average Return = [(Product of Returns)(1/No of Years)]- 1
= 1.67(1/6) - 1
= 1.0892 - 1
= 0.0892 or 8.92%
Arithmetic Average Return = Sum of all the returns / No. of Count or Years
= (0.08 + 0.26 + 0.14 - 0.17 + 0.31 - 0.01) / 6
= 0.1017 or 10.17%
Your answer of Airthmetic Average Return is correct just refer the calculation of Geometric Average Return.
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