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A stock has annual returns of 5 percent, 21 percent, 12 percent, 7 percent, and 6 percent for the past five years. The arithmetic average
A stock has annual returns of 5 percent, 21 percent, 12 percent, 7 percent, and 6 percent for the past five years. The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.
Multiple Choice
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5.80; 4.86
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5.80; 5.03
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5.62; 5.03
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5.40; 5.03
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5.40; 4.86
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