Suppose the Quarterly Arithmetic Average Return for a Stock Is

question 91

Multiple Choice

Suppose the quarterly arithmetic average return for a stock is 5% per quarter and the stock gives a return of 10% each over the next two quarters.The arithmetic average return over the six quarters is:

• A)9%
• B)6.67%
• C)7.5%
• D)10%
• E)12%

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