A Stock Had Returns of 8%, 11%, -2%, 5%, and 13

question 144

Multiple Choice

A stock had returns of 8%, 11%, -2%, 5%, and 13% over the past 5 years, respectively. What is the geometric average rate of return for this time period?

• A) 6.73%
• B) 6.87%
• C) 7.13%
• D) 7.42%
• E) 7.89%

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Definitions:

Bill of Lading

A legal document between a shipper and carrier detailing the type, quantity, and destination of goods being shipped.

Contracted-for Shipment

An agreement to transport goods to a specified location under the terms of a contract.

Letter of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe, providing security in international trade.

International Sale of Goods

Transactions involving the sale of goods between parties residing in different countries.