Something grows at an annualized rate of 5% for 4 months and then declines at an annualized rate of 4% for the next four months. What would be the annualized growth rate over the entire 8 month period?
I am conflicted if I should use a geometric mean of 5% an -4% or if I should do (1+0.05)(1-0.04)-1 = 0.8%. Thanks for the help