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

question 2

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 8.78%, respectively.
• B) 9.30% and 7.89%, respectively.
• C) 9.30% and 7.03%, respectively.
• D) 9.30% and 6.37%, respectively.