1. A stocks rate of return in year 1 is 0.3, in year 2 is -0.2, and in year 3 is -0.4. What is the stock annual arithmetric average return?
2. A stocks rate of return in year 1 is 0.2, in year 2 is 0.0, and in year 3 is 0.4. What is the stock annual geometric return?
3. Milo Corporation has a Beta of 0.8. The U.S. government T-Bill is expected to yield 0.04, and the S&P 500 is expected to yield 0.11 in the near future. What is Milo's required rate of return?