Gypsy

6)
If a stock decreases in one period and then increases by an equal dollar amount in the next period, will the respective arithmetic average of the continuously compounded and holding period rates of return be positive, negative, or zero?
I think the explanation given for this one is pretty straight forward, maybe it helps if you think of the two hold periods as two different investments.
First investment of $100 lost $10 which is 10% to $90.
Second investment(second period of original investment) of $90 earned $10. $10/$90 is around 11%. If you take average of both even though the nominal dollar amount is the same, percentage wise the increase is greater than the decrease