The Rate of Return for a Stock Over a Three-Year

question 71

Short Answer

The rate of return for a stock over a three-year period is 0.527,0.145,and 0.684.The geometric mean rate of return is_____ .

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Definitions:

Income Taxes

Taxes imposed by the government on individuals or entities based on their net income or profit.

After-Tax Discount Rate

This refers to the rate of return on an investment after accounting for taxes, used in capital budgeting to assess the value of future cash flows.

Income Tax Rate

The proportion of an entity's or person's income that is subject to taxation.

After-Tax Discount Rate

A rate used in financial analysis that takes into account the effect of taxes on the discount rate used for present value calculations.