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Assume a stock price is 50 at the close of day 1, 100 at the close of day 2, and 50 at the close of
Assume a stock price is 50 at the close of day 1, 100 at the close of day 2, and 50 at the close of day 3. Over this period:
A. The average daily geometric return is greater than the average daily arithmetic return.
B. The average daily geometric return is less than the average daily arithmetic return.
C. The average daily geometric return is equal to the average daily arithmetic return.
D. There is not enough information to determine whether the average daily geometric return is different than the average daily arithmetic return.
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