A Stock Produced Annual Returns of 8

question 105

Multiple Choice

A stock produced annual returns of 8.5, −18, 15, 17, and 12 percent over the past five years, respectively. What is the geometric average return?

• A)5.78%
• B)6.04%
• C)6.34%
• D)7.21%
• E)8.20%

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Definitions:

Experience Corollary

Experience Corollary is a concept suggesting that an individual's understanding and interpretation of the world are shaped by their cumulative experiences.

Modulation Corollary

A concept in psychology that suggests individuals have the ability to modify or regulate their responses to stimuli based on their perceptions and interpretations.

Fragmentation Corollary

A principle suggesting that an individual's belief system is composed of many independent elements that can contradict one another, allowing for adaptability and change in different contexts.

Corollary

A proposition that follows from one already proven, used in the context of personal construct theory to explain how individuals anticipate events by the application of their personal constructs.