Suppose you own two stocks, A and B. In year 1, stock A earns a...
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Finance
Suppose you own two stocks, A and B. In year 1, stock A earns a 2% return and stock B earns a 9% return. In year 2, stock A earns an 18% return and stock B earns an 11% return. __________ has the higher arithmetic average return.
A. Stock A
B. Stock B
C. The two stocks have the same arithmetic average return.
D. At least three periods are needed to calculate the arithmetic average return.
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