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%

---

Definitions:

Restatements

Collections of common law standards and principles organized by subject, intended to clarify and refine legal doctrines.

Law Review

A scholarly journal focusing on legal issues, often run by law students and used as a forum for the discussion of legal topics.

Common Law Doctrines

Fundamental principles that emerge from judicial decisions over time rather than from statutes or constitutions.

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government, fundamental principles, and rights of citizens.