Suppose That a Stock Gave a Realized Return of 20

question 78

Multiple Choice

Suppose that a stock gave a realized return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is ________.

• A) 8.28%
• B) 12.43%
• C) 14.08%
• D) 16.57%

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Definitions:

US Exports

Goods or services produced within the United States and sold to buyers in other countries.

US Imports

Goods and services brought into the United States from other countries for sale, often impacted by trade policies, treaties, and economic conditions.

Weaker Peso

Refers to a decline in the value of the Mexican Peso relative to other currencies, which can affect international trade and economic conditions in Mexico.

Mexican Exports

Goods or services sold by Mexico to other countries, which contributes to the country's economy and trade balance.