Over the Last Four Years,a Stock Has Had an Arithmetic

question 95

Multiple Choice

Over the last four years,a stock has had an arithmetic average return of 8.8 percent.Three of those four years produced returns of 16.3 percent,10.2 percent,and -14.1 percent,respectively.What is the geometric average return for this four-year period?

• A)7.83 percent
• B)8.39 percent
• C)8.67 percent
• D)9.40 percent
• E)9.97 percent

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Definitions:

Absolute Advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Radios

Electronic devices for receiving radio waves and converting them into sound or other signals.

England

A country that is part of the United Kingdom, known for its rich history, cultural heritage, and as a pioneer of the industrial revolution.

Radio

A technology that uses radio waves to carry information, such as sound, by systematically modulating properties of electromagnetic energy waves transmitted through space.