Over the last four years, the common stock of Cars Corporation has had an arithmetic average...

 

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Over the last four years, the common stock of Cars Corporation has had an arithmetic average return of 7.6 percent. Three of those four years produced returns of 16.4 percent, 9.6 percent, and 2.5 percent. What is the geometric average return for this 4-year period? Over the last four years, the common stock of Cars Corporation has had an arithmetic average return of 7.6 percent. Three of those four years produced returns of 16.4 percent, 9.6 percent, and 2.5 percent. What is the geometric average return for this 4-year period?

Answer rating: 100% (QA)

To calculate the geometric average return we need to multiply the individua... View the full answer