公司理财-习题库-Chap012

公司理财-习题库-Chap012公司理财-习题库-Chap012PAGE公司理财-习题库-Chap012CHAPTER12SomeLessonsfromCapitalMarketHistoryI.DEFINITIONSRISKPREMIUMa1.Theexcessreturnrequiredfromariskyassetoverthatrequiredfromarisk-freeassetiscalledthe:a.riskpremium.b.geometricpremium.c.excessreturn.d.averagereturn.e.variance.VARIANCEb2.Theaveragesquareddifferencebetweentheactualreturnandtheaveragereturniscalledthe:a.volatilityreturn.b.variance.c.standarddeviation.d.riskpremium.e.excessreturn.STANDARDDEVIATIONc3.Thestandarddeviationforasetofstockreturnscanbecalculatedasthe:a.positivesquarerootoftheaveragereturn.b.averagesquareddifferencebetweentheactualreturnandtheaveragereturn.c.positivesquarerootofthevariance.d.averagereturndividedbyNminusone,whereNisthenumberofreturns.e.variancesquared.NORMALDISTRIBUTIONd4.Asymmetric,bell-shapedfrequencydistributionthatiscompletelydefinedbyitsmeanandstandarddeviationisthe_____distribution.a.gammab.Poissonc.bi-modald.normale.uniformGEOMETRICAVERAGERETURNd5.Theaveragecompoundreturnearnedperyearoveramulti-yearperiodiscalledthe_____averagereturn.a.arithmeticb.standardc.variantd.geometrice.realARITHMETICAVERAGERETURNa6.Thereturnearnedinanaverageyearoveramulti-yearperiodiscalledthe_____averagereturn.a.arithmeticb.standardc.variantd.geometrice.realEFFICIENTCAPITALMARKETe7.Anefficientcapitalmarketisoneinwhich:a.brokeragecommissionsarezero.b.taxesareirrelevant.c.securitiesalwaysofferapositiverateofreturntoinvestors.d.securitypricesareguaranteedbythe.SecuritiesandExchangeCommissiontobefair.e.securitypricesreflectavailableinformation.EFFICIENTMARKETSHYPOTHESISa8.Thenotionthatactualcapitalmarkets,suchastheNYSE,arefairlypricediscalledthe:a.EfficientMarketsHypothesis(EMH).b.LawofOnePrice.c.OpenMarketsTheorem.d.Laissez-FaireAxiom.e.MonopolyPricingTheorem.STRONGFORMEFFICIENCYb9.Thehypothesisthatmarketpricesreflectallavailableinformationofeverykindiscalled_____formefficiency.a.openb.strongc.semi-strongd.weake.stableSEMISTRONGFORMEFFICIENCYc10.Thehypothesisthatmarketpricesreflectallpublicly-availableinformationiscalled_____formefficiency.a.openb.strongc.semi-strongd.weake.stableWEAKFORMEFFICIENCYd11.Thehypothesisthatmarketpricesreflectallhistoricalinformationiscalled_____formefficiency.a.openb.strongc.semi-strongd.weake.stableII.CONCEPTSTOTALRETURNd12.Thetotalpercentagereturnonanequityinvestmentiscomputedusingtheformula______,whereP1isthepurchasecost,P2representsthesaleproceeds,anddisthedividendincome.a.(P2–P1)(P2+d)b.(P1–P2)(P2+d)c.(P1–P2–d)P1d.(P2–P1+d)P1e.(P2–P1+d)P2DIVIDENDYIELDa13.Thedividendyieldisequalto_____,whereP1isthepurchasecost,P2representsthesaleproceeds,anddisthedividendincome.a.dP1b.dP1c.dP2d.dP2e.d(P1+P2)DIVIDENDYIELDc14.TheZoloCo.justdeclaredthattheyareincreasingtheirannualdividendfrom$pershareto$pershare.Ifthestockpriceremainsconstant,then:a.thecapitalgainsyieldwilldecrease.b.thecapitalgainsyieldwillincrease.c.thedividendyieldwillincrease.d.thedividendyieldwillalsoremainconstant.e.neitherthecapitalgainsyieldnorthedividendyieldwillchange.CAPITALGAINb15.Thedollaramountofthecapitalgainonaninvestmentiscomputedas_____,whereP1isthepurchasecost,P2representsthesaleproceeds,anddisthedividendincome.a.P1–P2b.P2–P1c.P2P1d.P1–P2+de.P2–P1–dTOTALRETURNe16.Thecapitalgainsyieldplusthedividendyieldonasecurityiscalledthe:a.varianceofreturns.b.geometricreturn.c.averageperiodreturn.d.summationofreturns.e.totalreturn.REALRETURNc17.Therealrateofreturnonastockisapproximatelyequaltothenominalrateofreturn:a.multipliedby(1+inflationrate).b.plustheinflationrate.c.minustheinflationrate.d.dividedby(1+inflationrate).e.dividedby(1-inflationrate).REALRETURNc18.Aslongastheinflationrateispositive,therealrateofreturnonasecurityinvestmentwillbe____thenominalrateofreturn.a.greaterthanb.equaltoc.lessthand.greaterthanorequaltoe.unrelatedtoHISTORICALRECORDd19.Aportfoliooflargecompanystockswouldcontainwhichoneofthefollowingtypesofsecurities?a.stockofthefirmswhichrepresentthesmallest20percentofthecompanieslistedontheNYSEb..Treasurybillsc.long-termcorporatebondsd.stocksoffirmsincludedintheS&P500indexe.long-termgovernmentbondsHISTORICALRECORDd20.Basedontheperiodof1926through2003,_____havetendedtooutperformothersecuritiesoverthelong-term.a..Treasurybillsb.largecompanystocksc.long-termcorporatebondsd.smallcompanystockse.long-termgovernmentbondsHISTORICALRECORDa21.Whichoneofthefollowingtypesofsecuritieshastendedtoproducethelowestrealrateofreturnfortheperiod1926through2003?a..Treasurybillsb.long-termgovernmentbondsc.smallcompanystocksd.largecompanystockse.long-termcorporatebondsHISTORICALRECORDd22.Onaverage,fortheperiod1926through2003:a.therealrateofreturnon.Treasurybillshasbeennegative.b.smallcompanystockshaveunderperformedlargecompanystocks.c.long-termgovernmentbondshaveproducedhigherreturnsthanlong-termcorporatebonds.d.theriskpremiumonlong-termcorporatebondshasexceededtheriskpremiumonlong-termgovernmentbonds.e.theriskpremiumonlargecompanystockshasexceededtheriskpremiumonsmallcompanystocks.HISTORICALRECORDe23.Overtheperiodof1926through2003,theannualrateofreturnon_____hasbeenmorevolatilethantheannualrateofreturnon_____:a.largecompanystocks;smallcompanystocks.b.long-termgovernmentbonds;long-termcorporatebonds.c..Treasurybills;long-termgovernmentbonds.d.long-termcorporatebonds;smallcompanystocks.e.largecompanystocks;long-termcorporatebonds.HISTORICALRECORDd24.Duringtheperiodof1926through2003theannualrateofinflation:a.wasalwayspositive.b.wasonlynegativeduringthe3yearsoftheGreatDepression.c.neverexceeded10percent.d.fluctuatedsignificantlyfromoneyeartothenext.e.tendedtobenegativeduringtheyearsofWorldWarII.HISTORICALRECORDe25.Basedontheperiodof1926through2003theannualrateofinflationrangedfrom_____percentto_____percent.a.-5;6b.-5;9c.-7;6d.-7;15e.-10;18HISTORICALRECORDb26.$1investedin.Treasurybillsin1926wouldhaveincreasedinvalueto____by2003.a.$10b.$17c.$30d.$43e.$60HISTORICALRECORDd27.Whichoneofthefollowingisacorrectrankingofsecuritiesbasedontheirvolatilityovertheperiodof1926to2003Rankfromhighesttolowest.a.largecompanystocks,.Treasurybills,long-termgovernmentbondsb.smallcompanystocks,long-termcorporatebonds,largecompanystocksc.smallcompanystocks,long-termgovernmentbonds,long-termcorporatebondsd.largecompanystocks,long-termcorporatebonds,long-termgovernmentbondse.long-termgovernmentbonds,long-termcorporatebonds,.TreasurybillsHISTORICALRECORDd28.$1investedinsmallcompanystocksin1926wouldhaveincreasedinvalueto_____by2003.a.$60b.$2,284c.$4,092d.$10,953e.$13,185HISTORICALRECORDd29.Thehighestrateofannualinflationbetween1926and2003was_____percent.a.7b.10c.13d.18e.22HISTORICALRECORDe30.Theannualreturnonlong-termgovernmentbondshasrangedbetween_____percentand_____percentduringtheperiod1926to2003.a.-2;8b.-4;6c.-5;10d.-6;29e.-7;44HISTORICALRECORDe31.Overtheperiodof1926to2003,smallcompanystockshadanaveragereturnof_____percent.a.b.c.d.e.HISTORICALAVERAGERETURNSc32.Overtheperiodof1926to2003,theaveragerateofinflationwas_____percent.a.b.c.d.e.HISTORICALAVERAGERETURNSc33.Theaverageannualreturnonlong-termcorporatebondsfortheperiodof1926to2003was_____percent.a.b.c.d.e.AVERAGERETURNSb34.Theaverageannualreturnonsmallcompanystockswasabout_____percentgreaterthantheaverageannualreturnonlarge-companystocksovertheperiodof1926to2003.a.3b.5c.7d.9e.11RISKPREMIUMa35.Theaverageriskpremiumon.Treasurybillsovertheperiodof1926to2003was_____percent.a.b.c.d.e.RISKPREMIUMa36.Whichoneofthefollowingisacorrectstatementconcerningriskpremium?a.Thegreaterthevolatilityofreturns,thegreatertheriskpremium.b.Thelowerthevolatilityofreturns,thegreatertheriskpremium.c.Thelowertheaveragerateofreturn,thegreatertheriskpremium.d.Theriskpremiumisnotcorrelatedtotheaveragerateofreturn.e.Theriskpremiumisnotaffectedbythevolatilityofreturns.RISKPREMIUMc37.Theriskpremiumiscomputedby______theaveragereturnfortheinvestment.a.subtractingtheinflationratefromb.addingtheinflationratetoc.subtractingtheaveragereturnonthe.Treasurybillfromd.addingtheaveragereturnonthe.Treasurybilltoe.subtractingtheaveragereturnonlong-termgovernmentbondsfromRISKPREMIUMc38.Theexcessreturnyouearnbymovingfromarelativelyrisk-freeinvestmenttoariskyinvestmentiscalledthe:a.geometricaveragereturn.b.inflationpremium.c.riskpremium.d.timepremium.e.arithmeticaveragereturn.RISKPREMIUMb39.Toconvinceinvestorstoacceptgreatervolatilityintheannualrateofreturnonaninvestment,youmust:a.decreasetheriskpremium.b.increasetheriskpremium.c.decreasetheexpectedrateofreturn.d.decreasetherisk-freerateofreturn.e.increasetherisk-freerateofreturn.FREQUENCYDISTRIBUTIONa40.Whichoneofthefollowingtakestheshapeofabellcurve?a.frequencydistributionb.variancec.riskpremiumgraphd.standarddeviatione.deviationofreturnsVARIANCEe41.Whichofthefollowingstatementsarecorrectconcerningthevarianceoftheannualreturnsonaninvestment?I.Thelargerthevariance,themoretheactualreturnstendtodifferfromtheaveragereturn.II.Thelargerthevariance,thelargerthestandarddeviation.III.Thelargerthevariance,thegreatertheriskoftheinvestment.IV.Thelargerthevariance,thehighertheexpectedreturn.a.IandIIIonlyb.II,III,andIVonlyc.I,III,andIVonlyd.I,II,andIIIonlye.I,II,III,andIVVARIANCEa42.Thevarianceofreturnsiscomputedbydividingthesumofthe:a.squareddeviationsbythenumberofreturnsminusone.b.averagereturnsbythenumberofreturnsminusone.c.averagereturnsbythenumberofreturnsplusone.d.squareddeviationsbytheaveragerateofreturn.e.squareddeviationsbythenumberofreturnsplusone.STANDARDDEVIATIONb43.Whichofthefollowingstatementsconcerningthestandarddeviationarecorrect?I.Thegreaterthestandarddeviation,thelowertherisk.II.Thestandarddeviationisameasureofvolatility.III.Thehigherthestandarddeviation,thelesscertaintherateofreturninanyonegivenyear.IV.Thehigherthestandarddeviation,thehighertheexpectedreturn.a.IandIIIonlyb.II,III,andIVonlyc.I,III,andIVonlyd.I,II,andIIIonlye.I,II,III,andIVSTANDARDDEVIATIONa44.Thestandarddeviationonsmallcompanystocks:I.isgreaterthanthestandarddeviationonlargecompanystocks.II.islessthanthestandarddeviationonlargecompanystocks.III.hadanaveragevalueofabout33percentfortheperiod1926to2003.IV.hadanaveragevalueofabout20percentfortheperiod1926to2003.a.IandIIIonlyb.IandIIonlyc.IIandIIIonlyd.IIandIVonlye.IandIVonlyARITHMETICVS.GEOMETRICAVERAGESb45.Estimatesusingthearithmeticaveragewillprobablytendto_____valuesoverthelong-termwhileestimatesusingthegeometricaveragewillprobablytendto_____valuesovertheshort-term.a.overestimate;overestimateb.overestimate;underestimatec.underestimate;overestimated.underestimate;underestimatee.accurately;accuratelyMARKETEFFICIENCYd46.Inanefficientmarket,thepriceofasecuritywill:a.alwaysriseimmediatelyuponthereleaseofnewinformationwithnofurtherpriceadjustmentsrelatedtothatinformation.b.reacttonewinformationoveratwo-dayperiodafterwhichtimenofurtherpriceadjustmentsrelatedtothatinformationwilloccur.c.risesharplywhennewinformationisfirstreleasedandthendeclinetoanewstablelevelbythefollowingday.d.reactimmediatelytonewinformationwithnofurtherpriceadjustmentsrelatedtothatinformation.e.beslowtoreactforthefirstfewhoursafternewinformationisreleasedallowingtimeforthatinformationtobereviewedandanalyzed.MARKETEFFICIENCYc47.Ifthefinancialmarketsareefficient,theninvestorsshouldexpecttheirinvestmentsinthosemarketsto:a.earnextraordinaryreturnsonaroutinebasis.b.generallyhavepositivenetpresentvalues.c.generallyhavezeronetpresentvalues.d.producearbitrageopportunitiesonaroutinebasis.e.producenegativereturnsonaroutinebasis.MARKETEFFICIENCYd48.Whichoneofthefollowingstatementsiscorrectconcerningmarketefficiency?a.Realassetmarketsaremoreefficientthanfinancialmarkets.b.Ifamarketisefficient,arbitrageopportunitiesshouldbecommon.c.Inanefficientmarket,somemarketparticipantswillhaveanadvantageoverothers.d.Afirmwillgenerallyreceiveafairpricewhenitsellssharesofstock.e.Newinformationwillgraduallybereflectedinastock’spricetoavoidanysuddenchangeinthepriceofthestock.MARKETEFFICIENCYc49.Financialmarketsfluctuatedailybecausethey:a.areinefficient.b.slowlyreacttonewinformation.c.arecontinuallyreactingtonewinformation.d.offertremendousarbitrageopportunities.e.onlyreflecthistoricalinformation.MARKETEFFICIENCYd50.Insidertradingdoesnotofferanyadvantagesifthefinancialmarketsare:a.weakformefficient.b.semiweak-formefficient.c.semistrong-formefficient.d.strong-formefficient.e.inefficient.MARKETEFFICIENCYe51.Accordingtotheory,studyinghistoricalpricesinordertoidentifymispricedstockswillnotworkinmarketsthatare_____efficient.I.weak-formII.semistrong-formIII.strong-forma.Ionlyb.IIonlyc.IandIIonlyd.IIandIIIonlye.I,II,andIIIMARKETEFFICIENCYe52.Whichofthefollowingtendtoreinforcetheargumentthatthefinancialmarketsareefficient?I.Informationspreadsrapidlyintoday’sworld.II.Thereistremendouscompetitioninthefinancialmarkets.III.Marketpricescontinuallyfluctuate.IV.Marketpricesreactsuddenlytounexpectednewsannouncements.a.IandIIIonlyb.IIandIVonlyc.I,II,andIIIonlyd.II,III,andIVonlye.I,II,III,andIVMARKETEFFICIENCYa53.Ifyouexcelinanalyzingthefutureoutlookoffirms,youwouldpreferthatthefinancialmarketsbe____formefficientsothatyoucanhaveanadvantageinthemarketplace.a.weakb.semiweakc.semistrongd.stronge.perfectMARKETEFFICIENCYc54.YourbestfriendworksinthefinanceofficeoftheDeltaCorporation.YouareawarethatthisfriendtradesDeltastockbasedoninformationheoverhearsintheoffice.Youknowthatthisinformationisnotknowntothegeneralpublic.YourfriendcontinuallybragstoyouabouttheprofitsheearnstradingDeltastock.Basedonthisinformation,youwouldtendtoarguethatthefinancialmarketsareatbest_____formefficient.a.weakb.semiweakc.semistrongd.stronge.perfectMARKETEFFICIENCYc55.The.SecuritiesandExchangeCommissionperiodicallychargesindividualsforinsidertradingandclaimsthoseindividualshavemadeunfairprofits.Basedonthisfact,youwouldtendtoarguethatthefinancialmarketsareatbest_____formefficient.a.weakb.semiweakc.semistrongd.stronge.perfectMARKETEFFICIENCYb56.Individualsthatcontinuallymonitorthefinancialmarketsseekingmispricedsecurities:a.tendtomakesubstantialprofitsonadailybasis.b.tendtomakethemarketsmoreefficient.c.areneverabletofindasecuritythatistemporarilymispriced.d.arealwaysquitesuccessfulusingonlywell-knownpublicinformationastheirbasisofevaluation.e.arealwaysquitesuccessfulusingonlyhistoricalpriceinformationastheirbasisofevaluation.III.PROBLEMSDOLLARRETURNSb57.Oneyearago,youpurchasedastockatapriceof$.Thestockpaysquarterlydividendsof$.40pershare.Today,thestockisworth$pershare.Whatisthetotalamountofyourdividendincometodatefromthisinvestment?a.$.40b.$c.$d.$e.$DOLLARRETURNSd58.Sixmonthsago,youpurchased100sharesofstockinABCCo.atapriceof$ashare.ABCstockpaysaquarterlydividendof$.10ashare.Today,yousoldallofyoursharesfor$pershare.Whatisthetotalamountofyourcapitalgainsonthisinvestment?a.$b.$c.$d.$e.$DOLLARRETURNSd59.Ayearago,youpurchased300sharesofIXCTechnologies,Inc.stockatapriceof$pershare.Thestockpaysanannualdividendof$.10pershare.Today,yousoldallofyoursharesfor$pershare.Whatisyourtotaldollarreturnonthisinvestment?a.$5,703b.$5,733c.$5,753d.$5,763e.$5,853DIVIDENDYIELDb60.Youpurchased200sharesofstockatapriceof$pershare.Overthelastyear,youhavereceivedtotaldividendincomeof$322.Whatisthedividendyield?a.percentb.percentc.percentd.percente.percentDIVIDENDYIELDd61.Winslow,Inc.stockiscurrentlysellingfor$40ashare.Thestockhasadividendyieldofpercent.Howmuchdividendincomewillyoureceiveperyearifyoupurchase500sharesofthisstock?a.$152b.$190c.$329d.$760e.$1,053DIVIDENDYIELDc62.Oneyearago,youpurchasedastockatapriceof$32ashare.Today,yousoldthestockandrealizedatotalreturnof25percent.Yourcapitalgainwas$6ashare.Whatwasyourdividendyieldonthisstock?a.percentb.percentc.percentd.percente.percentCAPITALGAINa63.Youjustsold200sharesofLangley,Inc.stockatapriceof$ashare.Lastyearyoupaid$asharetobuythisstock.Overthecourseoftheyear,youreceiveddividendstotaling$pershare.Whatisyourcapitalgainonthisinvestment?a.-$550b.-$222c.-$3d.$550e.$878CAPITALGAINb64.Youpurchased300sharesofDeltona,Inc.stockfor$ashare.Youhavereceivedatotalof$630individendsand$14,040inproceedsfromsellingtheshares.Whatisyourcapitalgainsyieldonthisstock?a.percentb.percentc.percentd.percente.percentCAPITALGAINd65.Today,yousold200sharesofSLG,Inc.stock..Yourtotalreturnonthesesharesispercent.Youpurchasedthesharesoneyearagoatapriceof$ashare.Youhavereceivedatotalof$280individendsoverthecourseoftheyear.Whatisyourcapitalgainsyieldonthisinvestment?a.percentb.percentc.percentd.percente.percentTOTALRETURNd66.Sixmonthsago,youpurchased1,200sharesofABCstockfor$ashare.Youhavereceiveddividendpaymentsequalto$.60ashare.Today,yousoldallofyoursharesfor$ashare.Whatisyourtotaldollarreturnonthisinvestment?a.$720b.$1,200c.$1,440d.$1,920e.$3,840TOTALRETURNc67.Eightmonthsago,youpurchased400sharesofWinston,Inc.stockatapriceof$ashare.Thecompanypaysquarterlydividendsof$.50ashare.Today,yousoldallofyoursharesfor$ashare.Whatisyourtotalpercentagereturnonthisinvestment?a.percentb.percentc.percentd.percente.percentREALRETURNb68.Lastyear,youpurchasedastockatapriceof$ashare.Overthecourseoftheyear,youreceived$individendsandinflationaveragedpercent.Today,yousoldyoursharesfor$ashare.Whatisyourapproximaterealrateofreturnonthisinvestment?a.percentb.percentc.percentd.percente.percentREALRETURNe69.Sevenmonthsago,youpurchasedastockatapriceof$ashare.Today,yousoldthosesharesfor$ashare.Duringthepastsevenmonths,youhavereceiveddividendstotaling$asharewhileinflationhasaveragedpercent.Whatisyourapproximaterealrateofreturnonthisinvestment?a.percentb.percentc.percentd.percente.percentSTANDARDDEVIATIONd70.Astockhadreturnsof8percent,-2percent,4percent,and16percentoverthepastfouryears.Whatisthestandarddeviationofthisstockforthepastfouryears?a.percentb.percentc.percentd.percente.percentRETURNDISTRIBUTIONSa71.Astockhasanexpectedrateofreturnofpercentandastandarddeviationofpercent.Whichoneofthefollowingbestdescribestheprobabilitythatthisstockwilllose11percentormoreinanyonegivenyear?a.lessthanpercentb.lessthanpercentc.lessthanpercentd.lessthanpercente.lessthan5percentRETURNDISTRIBUTIONSd72.Astockhasreturnsof3percent,18percent,-24percent,and16percentforthepastfouryears.Basedonthisinformation,whatisthe95percentprobabilityrangeforanyonegivenyear?a.topercentb.topercentc.topercentd.topercente.topercentRETURNDISTRIBUTIONSc73.Astockhadreturnsof8percent,14percent,and2percentforthepastthreeyears.Basedonthesereturns,whatistheprobabilitythatthisstockwillearnatleast20percentinanyonegivenyear?a.percentb.percentc.percentd.percente.percentRETURNDISTRIBUTIONSc74.Astockhadreturnsof11percent,1percent,9percent,15percent,and-6percentforthepastfiveyears.Basedonthesereturns,whatistheapproximateprobabilitythatthisstockwillearnatleast23percentinanyonegivenyear?a.percentb.percentc.percentd.percente.percentRETURNDISTRIBUTIONSc75.Astockhadreturnsof8percent,39percent,11percent,and-24percentforthepastfouryears.WhichoneofthefollowingbestdescribestheprobabilitythatthisstockwillNOTlosemorethan43percentinanyonegivenyear?a.percentb.percentc.percentd.percente.percentRETURNDISTRIBUTIONSb76.Overthepastfiveyears,astockproducedreturnsof14percent,22percent,-16percent,2percent,and10percent.WhatistheprobabilitythataninvestorinthisstockwillNOTlosemorethan8percentnorearnmorethan21percentinanyonegivenyear?a.34percentb.68percentc.95percentd.99percente.100percentARITHMETICAVERAGEb77.Whatarethearithmeticandgeometricaveragereturnsforastockwithannualreturnsof4percent,9percent,-6percent,and18percent?a.percent;percentb.percent;percentc.percent;percentd.percent;percente.percent;percentARITHMETICVS.GEOMETRICAVERAGESc78.Whatarethearithmeticandgeometricaveragereturnsforastockwithannualreturnsof21percent,8percent,-32percent,41percent,and5percent?a.percent;percentb.percent;percentc.percent;percentd.percent;percente.percent;percentGEOMETRICAVERAGEb79.Astockhadreturnsof6percent,13percent,-11percent,and17percentoverthepastfouryears.Whatisthegeometricaveragereturnforthistimeperiod?a.percentb.percentc.percentd.percente.percentGEOMETRICAVERAGEb80.Astockhadthefollowingpricesanddividends.Whatisthegeometricaveragereturnonthisstock?YearPriceDividend1$2$$.233$$.244$$.25a.percentb.percentc.percentd.percente.percentIV.ESSAYSEFFICIENTMARKETS81.Definethethreeformsofmarketefficiency.Thestudentshouldpresentastraightforwarddiscussi