Question: Annual stock return: Year Annual Return 2000 -15% 2001 18% 2002 -4% 2003 33% 2004 -25% Suppose there was a risk-free asset over this five-year
Annual stock return:
Year Annual Return
2000 -15%
2001 18%
2002 -4%
2003 33%
2004 -25%
Suppose there was a risk-free asset over this five-year period that paid 4% annually. If you invested $100 in Count Inc. stock and $100 in the risk-free asset at the beginning of 2000 and followed a buy and hold strategy over the five-year period, what would be your investments geometric annual return?
A. 1.7%
B. 2.1%
C. 3.8%
D. 4.6%
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