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Suppose the Quarterly Arithmetic Average Return for a Stock Is

Question 91

Multiple Choice

Suppose the quarterly arithmetic average return for a stock is 5% per quarter and the stock gives a return of 10% each over the next two quarters.The arithmetic average return over the six quarters is:


A) 9%
B) 6.67%
C) 7.5%
D) 10%
E) 12%

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