A Stock Has an Average Arithmetic Return of 10

question 21

Multiple Choice

A stock has an average arithmetic return of 10.55 percent and an average geometric return of 10.41 percent based on the annual returns for the last 15 years.What is projected average annual return on this stock for the next 10 years?

• A) 10.17 percent
• B) 10.21 percent
• C) 10.38 percent
• D) 10.46 percent
• E) 10.79 percent

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Definitions:

Epidural Space

A fat-filled space surrounding the spinal cord that provides a protective cushion and houses nerves and blood vessels.

Meninges

Three protective membranes that envelop the brain and spinal cord, comprising the dura mater, arachnoid mater, and pia mater.

Reciprocal Innervation

A neurological process where the activation of one muscle is accompanied by the relaxation of its antagonist muscle.

Stretch Reflex

A muscle reflex that responds to the stretching within the muscle, automatically contracting the muscle in response to its stretching in order to protect the muscle from over-stretching.