Lisa Owns a Stock That Has an Average Geometric Return

question 42

Multiple Choice

Lisa owns a stock that has an average geometric return of 11.34 percent and an average arithmetic return of 11.51 percent over the past six years.What average annual rate of return should Lisa expect to earn over the next four years?

• A)11.38 percent
• B)11.41 percent
• C)11.44 percent
• D)11.47 percent
• E)11.51 percent

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Definitions:

Government Law

The body of rules and statutes made by the legislative arm of the government, enforceable by the judiciary and other governmental entities.

Media Industry

The sector of the economy focused on the production and dissemination of content through various communication channels, including publishing, broadcasting, and digital platforms.

Regulation And Management

The act of controlling, directing, or governing something according to a system of rules or principles.

Desensitizes

The process by which repeated exposure to certain stimuli weakens emotional responsiveness to the stimuli.