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%

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Definitions:

Federal Questions

legal questions and issues that arise under the U.S. Constitution, federal laws, or treaties, requiring interpretation or application of federal law by a court.

Summons

A writ or process issued and served on a defendant in a civil action for the purpose of securing his appearance in the action.

Motion to Dismiss

A legal pleading filed by a defendant in a lawsuit asking the court to dismiss the case on the grounds that, even if all the claims by the plaintiff are true, there is no legal basis for a lawsuit.

Certiorari Jurisdiction

The authority of a superior court to review and correct the decisions of a lower court or tribunal, often invoked through a writ of certiorari.