What Are the Arithmetic and Geometric Average Returns for a Stock

question 56

Multiple Choice

What are the arithmetic and geometric average returns for a stock with annual returns of 5%,8%,-3%,and 16%?

• A) 6.5%; 6.28%
• B) 6.5%; 9.21%
• C) 9.3%; 6.28%
• D) 9.3%; 9.21%
• E) 10.25%; 8.31%

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Definitions:

1-butanol

An organic compound, also known as butyl alcohol, a four-carbon straight-chain alcohol with the chemical formula C4H9OH, used as a solvent and in the manufacture of other chemicals.

Structural Formula

A graphical representation showing the arrangement of atoms within a molecule, indicating how they are connected.

2-butanol

An organic compound, also known as sec-butanol, which is a type of alcohol with four carbon atoms and a secondary hydroxyl group.

3-butanol

An organic compound, also known as butyl alcohol, with the formula C4H10O, used as a solvent and in the manufacture of other chemicals.