The Beginning Share Price for a Security Over a Three-Year

question 10

Multiple Choice

The beginning share price for a security over a three-year period was $50.Subsequent year-end prices were $62,$58 and $64.The arithmetic average annual rate of return and the geometric average annual rate of return for this stock was:

• A) 9.30% and 8.58% respectively.
• B) 9.30% and 7.89% respectively.
• C) 9.30% and 7.03% respectively.
• D) 9.30% and 6.37% respectively.

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Definitions:

Hippocampus

A part of the brain associated with memory formation, organization, and storage.

Basal Ganglia

A group of structures in the brain that help control movement, coordination, and learning.

Frontal Lobes

Portions of the brain located behind the forehead that are responsible for complex cognitive functions, including decision making, problem solving, and controlling behavior.

Decision Making

The cognitive process of choosing between different alternatives or options to reach a conclusion or solution.