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A Stock Has Produced Returns of 11

Question 12

Multiple Choice

A stock has produced returns of 11.9 percent, 5.6 percent, 16.4 percent, and -4.2 percent over the past four years, respectively.What is the geometric average return?


A) 7.14 percent
B) 7.47 percent
C) 6.83 percent
D) 6.91 percent
E) 7.02 percent

Correct Answer:

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