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.

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Definitions:

Puberty

The period of sexual maturation, during which a person becomes capable of reproducing.

Androgyny

A blend of masculine and feminine characteristics in terms of traits, behaviors, or appearance.

Secondary Sex Characteristic

Physical features that emerge during puberty which are not directly involved in reproduction but distinguish the two sexes from each other.

Spermarche

The commencement of sperm production in boys, marking the onset of puberty and reproductive capability.