Suppose You Own Two Stocks, a and B)In Year 1

question 16

Multiple Choice

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.

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Definitions:

Continuing Improvement

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.

Small-Batch Production

Manufactures a variety of products crafted to fit customer specifications.

Better Ways

Innovative or more effective methods and practices that improve processes or outcomes.

Operations Management

Is the process of managing productive systems that transform resources into finished products or services.