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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