What Are the Arithmetic and Geometric Average Returns for a Stock

question 51

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 4%,9%,-6%,and 18%?

• A) 5.89%; 6.25%
• B) 6.25%; 5.89%
• C) 6.25%; 8.33%
• D) 8.3%; 5.89%
• E) 8.3%; 6.25%

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