A Stock Had Returns of 7 Percent,12 Percent,-10 Percent,and 17

question 17

Multiple Choice

A stock had returns of 7 percent,12 percent,-10 percent,and 17 percent annually over the past four years.What is the geometric average return for this time period?

• A)4.52%
• B)5.78%
• C)5.99%
• D)7.30%
• E)8.21%

---

Definitions:

Capital Additions

Expenditures made by a company to acquire or improve long-term assets to increase its efficiency or capacity.

Budgeted Production

The planned level of output for a future period, determined as part of a company's budgeting process to forecast resource needs.

Estimated Inventory

An approximation of the quantity or cost of inventory that a company has on hand at a certain point in time.

Capital Expenditures Budget

A financial plan for a company's investments in long-term assets and major projects.