Financial accounting question What are the arithmetic and geometric average returns for astock with annual returns of 19%, 9%, -4%, and 13%?a. 11.11%; 8.91%b. 9.25%; 11.11%c. 11.11%; 9.25%d. 8.91%; 9.25%e. 9.25%; 8.91%

Step 1: Define Returns on a StockThe average returns on a stock investment can be computed in terms…

Answered: What are the arithmetic and geometric…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 17P

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What are the arithmetic and geometric average returns for a stock with annual returns of 19%, 9%, -4%, and 13%? a. 11.11%; 8.91% b. 9.25%; 11.11% c. 11.11%; 9.25% d. 8.91%; 9.25% e. 9.25%; 8.91%