MC Questions 16-23 ... Geometric Returns, Unit Values, Arithmetic Returns, and Standard Deviations The following 8 questions refer to the follow returns for stocks for the first ten years of the century. These are total rate of returns; that is, both income and price. For example, the total rate of return for 2001 was a negative 11.85%. If you invested $1.00 at the beginning of the time frame [11/2001], how much would your dollar be worth five years [5] later; that is, on 12/31/2005? Hint: Calculate your unit values. Total Return Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -11.85% 3.97% 28.36% 10.74% 6.83% 15.61% 8.48% -36.55% 23.94% 21.00% What was your Geometric Average Return [Fidelity calls them "Average Annual Returns"] for the ten [10] years ending 12/31/2010 [Hint: Use the unit value that you calculated earlier.). Select one: a. 3.00% to 4.00% O b. 6.00% to 7.00% O c. 5.00% to 6.00% O d. 7.00% to 8.00% O e. More than 8.00% O f. Negative g. 4.00% to 5.00% O h. 1.00% to 2.00% Oi. 2.00% to 3.00% Oj. 0% to 1.00%