What is the geometric average return?

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The common stock of Mountain Farms has yielded 14.2 percent, 11.7 percent, 3.4 percent, -2.8 percent, and 15.8 percent over the past five years, respectively. What is the geometric average return?

a. 7.91 percent b. 8.03 percent c. 8.22 percent d. 8.27 percent e. 7.64 percent

A portfolio has an expected return of 13.4 percent. This portfolio contains two stocks and one risk-free security. The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent. The risk-free rate is 4.1 percent. The portfolio value is $48,000 of which $10,000 is the risk-free security. How much is invested in Stock X?

a. $21,548.19 b. $19,514.14 c. $18,478.87 d. $22,200.14 e. $16,904.72

Reference no: EM131451628

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