What Are the Arithmetic and Geometric Average Returns for a Stock

question 140

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 26%, 4%, -30%, 43%, and 7%?

• A) 10.0%; 7.0%
• B) 10.0%; 8.8%
• C) 10.0%; 21.8%
• D) 12.5%; 7.0%
• E) 12.5%; 8.8%

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Definitions:

Meetings

Gatherings of people, physically or virtually, to discuss and decide on various topics or issues.

Decisions Into Action

The process of implementing choices made by turning them into practical steps or actions to achieve desired outcomes.

Stay On Topic

Maintaining focus and continuity on the specific subject or issue being discussed or addressed, without diverging into unrelated areas.

Formal Group

A group formed by an organization with structured and defined roles for the purpose of achieving specific goals or tasks.