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 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 of the following statements is correct based on the historical record for the period 1926-2013?

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