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A stock had returns of 11.80% (1 year ago) 23.40% (2 years ago). X (3 years ago) and -12.60% (4 years ago) in each of
A stock had returns of 11.80% (1 year ago) 23.40% (2 years ago). X (3 years ago) and -12.60% (4 years ago) in each of the past 4 years. Over the past 4 years, the geometric average annual return for the stock was 7.86%. What was the arithmetic average annual return for the stock over the past 4 years? a. 8.71% (plus or minus 0.03 percentage points) b. 7.62% (plus or minus 0.03 percentage points) 6.5.65M (plus or minus 0.03 percentage points) d. 8.32 (plus or minus 0.03 percentage points) e. None of the other alternatives is within 0.03 percentage points of the correct
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