A stock had returns of 7 percent,12 percent,-10 percent,and 17 percent annually over the past four years.What is the geometric average return for this time period?
A)4.52%
B)5.78%
C)5.99%
D)7.30%
E)8.21%

Name: A stock had returns of 7 percent,12 percent,-10 percent,and 17 percent annually over the past four years.What is the geometric average return for this time period? A)4.52% B)5.78% C)5.99% D)7.30% E)8.21%
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

Geometric average = (1.07 × 1.12 × .90 × 1.17)^.25 - 1 = .0599,or 5.99%

A Stock Had Returns of 7 Percent,12 Percent,-10 Percent,and 17