Using single-period arithmetic returns, and starting with $100, calculate: (a) a 30% gain followed by a 20% loss ("average" 5% per period gain) (b) a 5% gain followed by a 5% gain ("average" 5% per period gain) What is the difference (a minus b)?

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Q: [$1.93(1.24)/(.12 − .24)][1 − (1.24/1.12)8] + [(1.24)/(1.12)]8[$1.93(1.035)/(.12 − .035)] = ?

A: Given expression  [ ( 1.93 )( 1.24 ( 0.12 - 0.24 ) ][ 1 - ( 1.24 )( 1.12 )( 8 )] + [ ( 1.24 )( 1.12…