A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four years. The arithmetic average of these returns is ______ percent while the geometric average return for the period is               percent.   a. 6.33; 6.19   b. 4.57; 4.75   c. 6.19; 6.33   d. 4.75; 4.57

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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A stock has annual returns of 6 percent, 14 percent, -3 percent, and 2 percent for the past four years. The arithmetic average of these returns is ______ percent while the geometric average return for the period is               percent.

  a.

6.33; 6.19

  b.

4.57; 4.75

  c.

6.19; 6.33

  d.

4.75; 4.57

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