The Value Line Index Is an Equally-Weighted Geometric Average of the Returns

question 24

Multiple Choice

The Value Line Index is an equally-weighted geometric average of the returns of about 1,700 firms.The value of an index based on the geometric average returns of three stocks where the returns on the three stocks during a given period were 32%, 5%, and-10%, respectively, is

• A)4.3%.
• B)7.6%.
• C)9.0%.
• D)13.4%.

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The practice of being or tendency to be positive or optimistic in attitude.

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