A Stock Has Annual Returns of 5 Percent,21 Percent,-12 Percent,7

Multiple Choice

A stock has annual returns of 5 percent,21 percent,-12 percent,7 percent,and -6 percent for the past five years.The arithmetic average of these returns is _____ percent while the geometric average return for the period is _____ percent.

A) 3.89; 3.62
B) 3.89; 4.60
C) 3.62; 3.89
D) 4.60; 3.62
E) 4.60; 3.89