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A Stock Has Annual Returns of 6 Percent,14 Percent,-3 Percent,and

Question 63

Multiple Choice

A stock has annual returns of 6 percent,14 percent,-3 percent,and 2 percent for the past four years.The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.


A) 4.57; 4.75
B) 4.75; 4.57
C) 6.33; 6.19
D) 6.19; 6.33
E) 6.33; 6.33

Correct Answer:

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