
A stock has annual returns of 5 percent, 21 percent, −12 percent, 7 percent, and 6 percent for the past five years. The arithmetic average of these returns is ________ percent while the geometric average return for the period is ________ percent.
A) 5.80; 4.86
B) 5.80; 5.03
C) 5.62; 5.03
D) 5.40; 5.03
E) 5.40; 4.86
Correct Answer:
Verified
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