Question: What is the expected arithmetic return of a security based on the following historical data? Return 5 years ago = 17.0% Return 4 years ago

  1. What is the expected arithmetic return of a security based on the following historical data?
  2. Return 5 years ago = 17.0%
  3. Return 4 years ago = 9.2%
  4. Return 3 years ago = -2.2%
  5. Return 2 years ago = -12.2%
  6. Return last year = 32.0%

a.7.69%

b.8.76%

c.11.29%

d.14.52%

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