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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

  • 5.80; 4.86

  • 5.80; 5.03

  • 5.62; 5.03

  • 5.40; 5.03

  • 5.40; 4.86

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