7 Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9%has thereturn. In year 2, stock A earns an 18% return and stock B earns an 11% return.higher arithmetic average return.O Stock AO Stock BO The two stocks have the same arithmetic average return.At least three periods are needed to calculate the arithmetic average return.

The arithmetic average is the mean return which will be calculated by dividing the sum of Return…

Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% has the return. In year 2, stock A earns an 18% return and stock B earns an 11% return. higher arithmetic average return. Stock A Stock B The two stocks have the same arithmetic average return. O At least three periods are needed to calculate the arithmetic average return.

Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% has the return. In year 2, stock A earns an 18% return and stock B earns an 11% return. higher arithmetic average return. Stock A Stock B The two stocks have the same arithmetic average return. O At least three periods are needed to calculate the arithmetic average return.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 12P

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Similar questions

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