What Are the Arithmetic and Geometric Average Returns for a Stock

question 57

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 6.2 percent,12.8 percent,−7.7 percent,and 9.4 percent?

• A)5)175%;5.028%
• B)6)256%;4.892%
• C)5)175%;4.873%
• D)6)256%;5.028%
• E)6)900%;4.873%

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Definitions:

Weak Acids

Acids that only partially ionize in solution, giving them weaker acidic properties compared to strong acids.

Electrolytes

Minerals in body fluids that carry an electric charge and are essential for the functioning of muscles and nerves.

Acidic

Pertaining to substances that have a pH less than 7, and are capable of donating a proton or hydrogen ion in a chemical reaction.

Strong Acids

Acids that completely ionize in solution, yielding a high concentration of hydrogen ions (H+) and demonstrating a strong ability to donate protons.