What is geometric mean return for stock

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Reference no: EM131911109

1. Suppose you bought a 12 percent coupon bond one year ago for $870. The bond sells for $945 today. Assuming a face value of $1,000, what is your percentage return over the past year?

A) 24.43%

B) 26.67%

C) None of these are correct?

D) 18.16%

E) 22.41%

2. A stock had returns of 12 percent, 11 percent, 16 percent, 8 percent, 15 percent, and 8 percent over the last six years. What is the geometric mean return for this stock?

A) 11.42%

B) 11.62%

C) 11.72%

D) None of these are correct.

E) 11.91%

Reference no: EM131911109

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