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NEW QUESTION: 3 A stock has the following returns over 4 years: +5%, -6%, +8%, +3%. The annual arithmetic and geometric rates of return over the 4 years are: A. 5%; 5.57% B. 2.5%; 2.36% C. 2.5%; 9.79% D. 10%; 9.79% Answer: B Explanation: Explanation/Reference: Explanation: The mean equals (5% + (-6%) + 8% + 3%)/4 = 2.5% The geometric mean equals (1.05 * 0.94 * 1.08 * 1.03)
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