What Are the Arithmetic and Geometric Average Returns for a Share

question 3

Multiple Choice

What are the arithmetic and geometric average returns for a share with annual returns of 4%, 9%, -6%, and 18%?

• A)5.89%; 6.25%
• B)6.25%; 5.89%
• C)6.25%; 8.33%
• D)8.3%; 5.89%
• E)8.3%; 6.25%

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