Question

You have the following rates of return for a risky portfolio for several recent years. Assume...

You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends.

Year Beginning of
Year Price
# of Shares
Bought or Sold
2014 $115 280 bought
2015 $120 230 bought
2016 $116 255 sold
2017 $119 255 sold


What is the geometric average return for the period?

Multiple Choice

  • 2.30%

  • .86%

  • 1.15%

  • 1.72%

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