What is the geometric return-arithmetic return for the stock

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Reference no: EM131916280

Arithmetic and Geometric Returns

A stock had returns of 16 percent, 13 percent, 16 percent, -7 percent, 19 percent, and 14 percent over the last six years.

Required:

(a) What is the arithmetic return for the stock?

a.11.83%

b.11.93%

c.14.20%

d.12.43%

e.12.03%

(b) What is the geometric return for the stock?

a.12.07%

b.13.92%

c.11.47%

d.11.57%

e.11.27%

Reference no: EM131916280

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