Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: ..... O A. 5.78% O B. 8.67% C. 9.83% O D. 11.57%

Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is: ..... O A. 5.78% O B. 8.67% C. 9.83% O D. 11.57%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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**Transcription for Educational Website**

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Suppose that a stock gave a realized return of 15% over a two-year time period and a 5% return over the third year. The geometric average annual return is:

- **A.** 5.78%
- **B.** 8.67%
- **C.** 9.83%
- **D.** 11.57%

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