What Are the Arithmetic and Geometric Average Returns for a Stock

question 4

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 21%,8%,-32%,41%,and 5%?

• A) 5.6%; 8.6%
• B) 5.6%; 6.3%
• C) 8.6%; 5.6%
• D) 8.6%; 8.6%
• E) 8.6%; 6.3%

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