A Stock Has an Average Arithmetic Return of 12

question 2

Multiple Choice

A stock has an average arithmetic return of 12.55 percent and an average geometric return of 12.40 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) 12.17 percent
• B) 12.21 percent
• C) 12.38 percent
• D) 12.50 percent
• E) 12.69 percent

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Definitions:

Fundamental Shift

A significant change in the basic nature or structure of something, often implying a profound transformation in approach or understanding.

Communications

The imparting or exchanging of information by speaking, writing, or using some other medium.

Different Approach

Adopting a new or alternative method or perspective to address a problem or task.

Forms of Communication

Various methods used to convey messages between individuals or groups, including verbal, non-verbal, written, and digital means.