What Are the Arithmetic and Geometric Average Returns for a Stock

question 65

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:

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