Question: What are the geometric and arithmetic average returns for a stock with annual returns of 5 percent, 10 percent, 8 percent, and 16 percent? 5.37

What are the geometric and arithmetic average returns for a stock with annual returns of 5 percent, 10 percent, What are the geometric and arithmetic average returns for a stock with 8 percent, and 16 percent?

5.37 percent; 5.75 percent
6.49 percent; 7.67 percent
7.22 percent; 5.75 percent
7.22 percent; 7.67 percent

9.68 percent; 5.75 percent

Which one of the following is a correct ranking of securities based on their volatility over the period of 1926 2013? Rank from highest to lowest.

large company stocks, U.S. Treasury bills, long-term government bonds
small company stocks, long-term corporate bonds, large company stocks
small company stocks, long-term government bonds, long-term corporate bonds
large company stocks, long-term corporate bonds, long-term government bonds
long-term corporate bonds, long-term government bonds, U.S. Treasury bills

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