RedStone Mines Stock Returned 7

question 80

Multiple Choice

RedStone Mines stock returned 7.5,15.3,-9.2,and 11.5 percent over the past four years,respectively.What is the geometric average return?

• A)5.84 percent
• B)6.36 percent
• C)7.75 percent
• D)9.94 percent
• E)10.33 percent

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Definitions:

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently the company is using its assets to generate profit.

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its goals.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred in operating a business.

Return on Assets Ratio

A financial metric that measures how profitable a company is in relation to its total assets, indicating how efficient management is at using assets to generate earnings.