Arithmetic and Geometric Returns a stock has had returns of 18 percent, 4 percent, 39 percent, 5

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Arithmetic and Geometric Returns a stock has had returns of 18 percent, 4 percent, 39 percent, —5 percent, 26 percent, and —11 percent over the last six years. What are the arithmetic and geometric returns for the stock?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: May 03, 2011 03:29 AM

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Arithmetic and Geometric Returns a stock has had returns of 18 percent, 4 percent, 39 percent, 5

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The arithmetic average return is the sum of the known returns divided by the number of returns so ...View the full answer

Fundamentals of Corporate Finance

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