Suppose You Own Two Stocks,A and B The Risk-Free Return During the Sample Period Was 3

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.Which stock has the higher geometric average return?

A) Stock A
B) Stock B
C) The two stocks have the same geometric average return
D) At least three periods are needed to calculate the geometric average return
E) None of the above
The following data are available relating to the performance of Sooner Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | } \hline & \text { Sooner } & \text { Market Portfolio } \\\hline \text { Average Return } & 20 \% & 11 \% \\\hline \text { Standard Deviation of Returns } & 44 ^ { \circ } \% & 19 \% \\\hline \text { Beta } & 1.8 & 1.0 \\\hline \text { Residual standard deviation } & 2.0 \% & 0.0 \% \\\hline\end{array}$$ The risk-free return during the sample period was 3%.