What Are the Arithmetic and Geometric Average Returns for a Stock

question 29

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 4%,10%,-6%,and 19%?

• A)5.89%; 6.25%
• B)6.25%; 5.89%
• C)6.75%; 6.35%
• D)8.3%; 5.89%
• E)8.3%; 6.25%

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Definitions:

Anthony Giddens

A prominent British sociologist known for his theory of structuration, which explores the relationship between individual actions and societal structures.

Systems

Complex networks of interrelated components that work together to fulfill a purpose or achieve a goal.

Intended Actions

Actions that are performed with a specific goal or purpose in mind, as opposed to those done unintentionally or reflexively.

Unintended Actions

Actions whose outcomes are not foreseen or intended by the actor, often leading to unexpected consequences.