Arithmetic return for the stock


Problem:

A stock had returns of 16 percent, 14 percent, 17 percent, 8 percent, 13 percent, and 14 percent over the last six years.

Required:

Question 1: What is the arithmetic return for the stock?

Question 2: What is the geometric return for the stock?

Note: Please show how to work it out.

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Finance Basics: Arithmetic return for the stock
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