Question: Please explain how to solve both step-by-step What was the geometric average return for a stock that had the following annual returns over the past
Please explain how to solve both step-by-step
What was the geometric average return for a stock that had the following annual returns over the past 4 years: 16.00% (4 years ago), 20.00% (3 years ago), -17.00% (2 years ago), and 39.00% (last year)?(round the value to 100th decimal and Please enter the value only without converting it to a decimal format. If the answer is 8.55%, enter 8.55) Selected Answer: 25.45 Correct Answer: 12.57 Answer range +/- 0.02514 (12.54486 - 12.59514) Question 2 O out of 10 points A stock had returns of -25.00% year ago), 11.00% years ago), X (3 years ago), and 25.00% (4 years ago) in each of the past 4 years. Over the past 4 years, the arithmetic average annual return for the stock was 5.00%. What was the geometric average annual return for the stock over the past 4 years?(Round the value to 100th decimal) Selected Answer: 19.75 Correct Answer: 3.2
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