Answered: A stock has had returns of 16 percent,…

A stock has had returns of 16 percent, 13 percent, 6 percent, -14 percent, -6 percent, and 18 percent over the last six years. What are the arithmetic and geometric returns for the stock?

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 had returns of 16 percent, 13 percent, 6 percent, -14 percent, -6 percent, and 18 percent over the last six years. What are the arithmetic and geometric returns for the stock?

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