Suppose you own two stocks,A and B.In year 1,stock A earns a 2% return and stock B earns a 9% return.In year 2,stock A earns an 18% return and stock B earns an 11% return.__________ has the higher arithmetic average return.
A) Stock A
B) Stock B
C) The two stocks have the same arithmetic average return
D) At least three periods are needed to calculate the arithmetic average return
E) None of the above
Correct Answer:
Verified
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