What is the geometric average return

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1. Over the past six years, a stock produced returns of 21 percent, -18 percent, 2 percent, 11 percent, -1 percent, and 24 percent. Based on these six years, what range of returns would you expect to see 99 percent of the time?

A. -53.24 percent to 40.24 percent

B. -40.24 percent to 53.24 percent

C. -36.67 percent to 48.38 percent

D. -48.38 percent to 36.67 percent

E. -54.00 percent to 72.00 percent

2. Your portfolio has provided you with returns of 26.3 percent, 19.8 percent, -4.6 percent, and 7.9 percent over the past four years, respectively. What is the geometric average return?

A. 8.06 percent

B. 9.27 percent

C.10.25 percent

D.11.71 percent

E.12.35 percent

Reference no: EM132020228

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