Suppose That a Stock Gave a Realized Return of 20

question 77

Multiple Choice

Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year.The geometric average annual return is:

• A)9.70%
• B)11.20%
• C)14.96%
• D)15.00%
• E)16.55%

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Definitions:

Foreign Exchange Rates

The value of one currency for the purpose of conversion to another, which determines how much of one currency can be exchanged for another.

Value-Added Taxes

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Final Customer

The end user or consumer who purchases a product or service for personal use and not for resale or further processing.

Homeshoring

A practice where businesses hire employees to work from home or a remote location rather than in a traditional office setting, often used as an alternative to offshoring.