Leeanne Owns a Stock That Has an Average Geometric Return

question 38

Multiple Choice

Leeanne owns a stock that has an average geometric return of 12.30 percent and an average arithmetic return of 12.55 percent over the past six years. What average annual rate of return should Leeanne expect to earn over the next four years?

• A)12.38%
• B)12.40%
• C)12.44%
• D)12.47%
• E)12.51%

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Definitions:

Double-Consciousness

A concept describing the internal conflict experienced by subordinated or marginalized groups in trying to navigate two cultures.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

Social Context

The sociocultural environment that surrounds individuals, influencing their behaviors, beliefs, and interactions.

Consciousness

The state of being aware of and able to think about oneself, one's surroundings, and one's relation to them, also encompassing notions of self-awareness and the awareness of social identities.