The Beginning Share Price for a Security Over a Three-Year

question 35

Multiple Choice

The beginning share price for a security over a three-year period was $50. Subsequent year-end prices were $62, $58 and $64. The arithmetic average annual rate of return and the geometric average annual rate of return for this stock were:

• A) 9.30% and 8.58% respectively.
• B) 9.30% and 7.89% respectively.
• C) 9.30% and 7.03% respectively.
• D) 9.30% and 6.37% respectively.

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