Suppose That a Stock Gave a Realized Return of 20

question 77

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)9.70%
• B)11.20%
• C)14.96%
• D)15.00%
• E)16.55%

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Definitions:

Critical Value

The threshold value(s) in a hypothesis test, beyond which the null hypothesis is rejected in favor of the alternative hypothesis.

Standard Error

The standard deviation of a sampling distribution indicating how much sample means differ from the actual population mean.

Point Estimate

A single value or statistic that serves as the best guess or most likely value for a population parameter based on sample data.

Population Mean

The average value of all individuals in a population.