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A stock has had returns of 16 percent, 12 percent, -28 percent over the last three...

A stock has had returns of 16 percent, 12 percent, -28 percent over the last three years, respectively. What is the geometric mean return for this stock?(Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43% instead of 0.0843 ) Your Answer: Question 4 options: Answer units

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Answer #1

Geometric average return = [(1 + 0.16)(1 + 0.12)(1 - 0.28)](1/3) - 1

Geometric average return = -0.0220 or -2.20%

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