What Is the Geometric Average Return on Her Stock If

question 27

Multiple Choice

What is the geometric average return on her stock if she sells it five years from today?

• A) -2.33%
• B) .59%
• C) 3.67%
• D) 4.88%

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Negatively Skewed

A negatively skewed distribution is one where the tail on the left side of the probability density function is longer or fatter than the right side, indicating that the bulk of the values are skewed to the right.

Variability

The degree to which scores in a set of data spread out or differ from each other.

Range

The range is calculated by subtracting the smallest value from the largest value in a set of data.