The Geometric Return on a Stock Over the Past 10

question 13

Multiple Choice

The geometric return on a stock over the past 10 years was 8.42 percent. The arithmetic return over the same period was 9.02 percent. What is the best estimate of the average return on this stock over the next 5 years?

• A) 8.75 percent
• B) 9.05 percent
• C) 9.08 percent
• D) 9.13 percent
• E) 9.47 percent

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Definitions:

The Antigen

A substance that, when introduced into the body, triggers an immune response by prompting the production of antibodies.

B-cell

A type of white blood cell crucial to the immune system, responsible for producing antibodies.

Macrophage

Any large, mononuclear phagocytic cell.

Complement

A complex system of proteins in the blood that works with the immune system to destroy foreign pathogens.