The Return Pattern on Your Favorite Stock Has Been 5

Multiple Choice

The return pattern on your favorite stock has been 5.39 percent,8.26 percent,−12.04 percent,and 14.27 percent over the last four years.What are the average arithmetic and geometric rates of return?

A) 3.45 percent; 3.21 percent
B) 3.97 percent; 3.48 percent
C) 3.88 percent; 3.64 percent
D) 3.92 percent; 3.56 percent
E) 3.51 percent; 3.26 percent