Baxter Inc

Multiple Choice

Baxter Inc.'s annual returns for the past four years were: 2.75%, -1.8%, 7.2%, and 6.5%.What are the arithmetic and geometric average annual returns for Baxter over the four-year period?

A) Arithmetic mean = 6.80%; geometric mean = 3.35%
B) Arithmetic mean = 3.66%; geometric mean = 3.60%
C) Arithmetic mean = 14.65%; geometric mean = 10.05%
D) Arithmetic mean = 18.03%; geometric mean = 21.20%