Geometric average returns for a stock


Problem:

Question 1: What are the arithmetic and geometric average returns for a stock with annual returns of 4%, 9%, -6%, and 18%?

A. 5.89%; 6.25%

B. 6.25%; 5.89%

C. 6.25%; 8.33%

D. 8.3%; 5.89%

E. 8.3%; 6.25%

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Finance Basics: Geometric average returns for a stock
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