Core Concepts Inc,.has experienced a stock price increase from $100.00 to $131.59 in only three years.Over this time period,what has been the firm's geometric average annual rate of return?
A)9.58%
B)9.63%
C)9.88%
D)9.92%

Question

Quizplus · Accepted Answer

The geometric average annual rate of return is calculated using the formula:Geometric average annual rate of return = (Ending value / Beginning value)^(1/n) - 1where:Ending value = $131.59Beginning value = $100.00n = 3 yearsPlugging these values into the formula, we get:Geometric average annual rate of return = ($131.59 / $100.00)^(1/3) - 1 = 9.58%Therefore, the correct answer is A) 9.58%.