A Stock Had Returns of 6%,13%,-11%,and 17% Over the Past

question 45

Multiple Choice

A stock had returns of 6%,13%,-11%,and 17% over the past four years. What is the geometric average return for this time period?

• A) 4.5%
• B) 5.7%
• C) 6.2%
• D) 7.3%
• E) 8.2%

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Definitions:

Cash Collections

The process or total amount of money received by a company from its customers for goods or services offered.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

May

The fifth month of the Julian and Gregorian calendars, often used in financial and operational planning calendars.

Cash Receipts

The total amount of cash collected by a business during a specific period.