You Own a Stock Has Produced an Average Geometric Return

Multiple Choice

You own a stock has produced an average geometric return of 9.7% and an average arithmetic return of 11.4% over the past 18 years. What annual rate of returns should you expect to earn on this security over the next 6 years?

A) 11.04%
B) 12.68%
C) 13.01%
D) 11.61%
E) 10.90%