Suppose the Quarterly Arithmetic Average Return for a Stock Is

question 28

Multiple Choice

Suppose the quarterly arithmetic average return for a stock is 10% per quarter and the stock gives a return of 15% each over the next two quarters. The arithmetic average return over the six quarters is ________.

• A) 15.17%
• B) 11.67%
• C) 12.83%
• D) 16.33%

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Definitions:

Nervous

Feeling anxious or apprehensive, often as a response to stress or an unfamiliar situation.

Circulatory

Pertaining to the circulatory system, which is the system responsible for circulating blood and lymph through the body.

Keloid

An overgrowth of new skin tissue; a scar.

Bell's Palsy

A temporary weakness or paralysis of the facial muscles, often resulting from damage to the facial nerves.