A stock had returns of 16 percent, 15 percent, 12 percent, 8 percent, 12 percent, and 5 percent over the last six years.
Required:
(a) What is the arithmetic return for the stock?
11.43%11.33%13.60%11.90%11.53%
(b) What is the geometric return for the stock?
11.27%11.57%11.37%11.07%13.67%