What is the arithmetic mean of the rate of return for JSI’s common stock over the four years?

The annual rate of return for JSI’s common stock has been:

Return

1995

1996

1997

1998

14%

19%

-10%

14%

a. What is the arithmetic mean of the rate of return for JSI’s common stock over the four years?

i. 8.62%.

ii. 9.25%.

iii. 14.25%.

iv. None of the above.

b. What is the geometric mean of the rate of return for JSI’s common stock over the four years?

i. 8.62%.

ii. 9.25%.

iii. 14.21%.

iv. Cannot be calculated due to the negative return in 1997.