Wednesday, November 9, 2011

CFA Harmonic versus geometric mean question?

I'm studying for the CFA level 1 exam and continue to apply the wrong equation when solving for an answer that requires picking between the geometric or the harmonic mean. I know HOW to solve the equations. Picking the the right equation to apply, however, continues to stump me. Can someone give me a simple explanation of when to apply the geometric mean versus the harmonic mean?

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