Geometric mean vs arithmetic mean

[archived_user]

Fund
Arithmetic Mean (%)
Geometric Mean (%)
SLASX
2.64
−0.65
PRFDX
4.31
1.59
“The difference between the geometric mean returns of the two funds (2.24%) is greater than the difference between the arithmetic mean returns of the two funds (1.67%). How should the analyst interpret these results?”
Taken directly from reading 8 - the paragraph after describes that geometric is compound growth.
I do understand that the larger the difference between the SLASX Arithmetic and geometric means the greater the variability.
Not clear about the significance of “greater variability between: arithmetic mean of two different samples vs geometric mean of two different samples”.
Thanks

 

[archived_user]

Arithmetic mean is not time weighted and Geo mean is.
For Arithmetic mean return earned in year 1 and year 2 have same weights where as in geometric mean return earned in year 1 would have lager weights than year 2 because we have held that asset longer than year 2.