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A stock had returns of 16 percent, 15 percent, 12 percent, 8 percent, 12 percent, and 5 percent over the last six years.

Required:

(a) What is the arithmetic return for the stock?

 11.43%11.33%13.60%11.90%11.53%

(b) What is the geometric return for the stock?

11.27%11.57%11.37%11.07%13.67%

Financial Management, Finance

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