zock Z has the following returns for last five years. Calculate the arithmetic average return and eometric return for the stock. Returns: 10%, 15%, -8%, -9% and 12% Arithmetic average is 4% and geometric return is 3.47%. b. Arithmetic average is 10.8% and geometric return is 10.77%. C. Arithmetic average is 7.2% and geometric return is 6.90%. d. Arithmetic average is 4.10% and geometric return is 3.47%. a.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
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tock Z has the following returns for last five years. Calculate the arithmetic average return and
geometric return for the stock.
Returns: 10%, 15%, -8%, -9% and 12%
a. Arithmetic average is 4% and geometric return is 3.47%.
b. Arithmetic average is 10.8% and geometric return is 10.77%.
C. Arithmetic average is 7.2% and geometric return is 6.90%.
d. Arithmetic average is 4.10% and geometric return is 3.47%.
Transcribed Image Text:tock Z has the following returns for last five years. Calculate the arithmetic average return and geometric return for the stock. Returns: 10%, 15%, -8%, -9% and 12% a. Arithmetic average is 4% and geometric return is 3.47%. b. Arithmetic average is 10.8% and geometric return is 10.77%. C. Arithmetic average is 7.2% and geometric return is 6.90%. d. Arithmetic average is 4.10% and geometric return is 3.47%.
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