Over the last four years, a stock has had an arithmetic average return of 8.8 percent. Three of those four years produced returns of 16.3 percent, 10.2 percent, and -14.1 percent. What is the geometric average return for this 4-year period? Select one:

a. 9.97 percent b. 9.40 percent Incorrect c. 8.39 percent d. 7.83 percent e. 8.67 percent

A stock produced returns of 16 percent, 9 percent, and 21 percent over three of the past four years. The arithmetic average for the past four years is 10 percent. What is the standard deviation of the stock's returns for the 4-year period?

Select one:

a. 9.09 percent

b. 10.83 percent

c. 11.75 percent

d. 8.54 percent

e. 6.82 percent

An efficient capital market is best defined as a market in which security prices reflect which one of the following?

Select one:

a. Current inflation

b. The historical arithmetic rate of return

c. Available information

d. The historical geometric rate of return

e. A risk premium