The Geometric Return on a Stock Over the Past 10

question 63

Multiple Choice

The geometric return on a stock over the past 10 years was 7.9 percent. The arithmetic return over the same period was 8.8 percent. What is the best estimate of the average return on this stock over the next 5 years?

• A)8.40%
• B)9.05%
• C)9.08%
• D)9.13%
• E)9.47%

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Definitions:

Responsiveness

The quality of reacting quickly and positively to changes or to the needs, suggestions, or requests of others.

Sound

Audible frequencies that propagate through the air or another carrier and are perceptible when they make contact with a human or animal's ear.

Fetal Development

The stage of human growth within the womb from conception to birth.

Reflex Response

An automatic, involuntary reaction to a specific stimulus.