The following are the sequencial returns of a stock: 8%, 10.3%, -7.69%, 16%, -25.9%, 14.69%, 7.48%.

What is the absolute difference between the arthmetic and the geometric (time-weighted) returns?

Multiple Choice

• 3.67%

• 2.78%

• 2.13%

• 1.06%

• 0.93%