Calculation regarding geometric average return


Over the last four years, the stock of Wagner's Paints has had an arithmetic average return of 6.5 percent. Three of those four years produced returns of 9 percent, 3 percent, and 1 percent. What is the geometric average return for this 4-year period?

A. 3.00 percent

B. 4.48 percent

C. 6.33 percent

D. 7.07 percent

E. 8.69 percent

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Finance Basics: Calculation regarding geometric average return
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