Question: What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? See possible answers below: 6.25%;

What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%? See possible answers below:

6.25%; 5.89%

6.25%; 8.33%

8.3%; 5.89%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!