1. A stock had returns of 16 percent, 4 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past six years. What is the geometric average return for this time period?

5.13 percent

5.39 percent

5.60 percent

4.67 percent

4.26 percent

2. The excess return is computed as the:

Risk-free rate plus the inflation rate.

Return on a security minus the inflation rate.

Risk-free rate minus the inflation rate.

Return on a risky security minus the risk-free rate.

Risk premium on a risky security minus the risk-free rate.