Louis Owns a Stock That Has Had an Average Geometric

question 1

Multiple Choice

Louis owns a stock that has had an average geometric return of 10.50 percent and an average arithmetic return of 11.00 percent over the past six years. What average annual rate of return should Louis expect to earn over the next four years?

• A)10.38%
• B)10.40%
• C)10.64%
• D)10.70%
• E)10.81%

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Definitions:

Flextime

A program that allows employees to choose their starting and ending times, provided that they are at work during a specified core period.

Preferred Time

A designated or chosen period that is seen as most suitable or desirable for a specific purpose or activity.