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A stock earned 18.7%, 14.0%, and 17.3% annually during the past three years. What was the difference between its arithmetic and compound average annual returns?

A stock earned 18.7%, 14.0%, and 17.3% annually during the past three years. What was the difference between its arithmetic and compound average annual returns?

a) 1.11%

b) 1.21%

c) 1.38%

d) 1.48%

e) 1.79%

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