What Are the Geometric and Arithmetic Average Returns for a Stock

question 297

Multiple Choice

What are the geometric and arithmetic average returns for a stock with annual returns of 5%, 10%, -8%, and 16%?

• A) 5.37%; 5.75%
• B) 6.49%; 7.67%
• C) 7.22%; 5.75%
• D) 7.22%; 7.67%
• E) 9.68%; 5.75%

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Definitions:

Motility

The ability of organisms and cells to move spontaneously and actively, consuming energy in the process.

Amoebozoa

A phylum of single-celled organisms characterized by their amoeboid movement and feeding by phagocytosis.

Excavates

A group of unicellular organisms, many of which are flagellates, that includes both free-living and parasitic species.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia used for movement and feeding.