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Suppose You Earned an Arithmetic Return on a Stock of Exactly10

Question 67

Multiple Choice

Suppose you earned an arithmetic return on a stock of exactly10% every year for 10 years.The geometric average return on the stock will be _________.


A) greater than the arithmetic average return
B) equal to the arithmetic average return
C) less than the arithmetic average return
D) indeterminable
E) none of these

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