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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Definitions:

Ski Storage

A specific area or facility designed for the purpose of safely storing skis when they are not in use, often found at ski resorts or lodges.

Bailment Completed

The conclusion of a bailment arrangement, where personal property temporarily entrusted to another is returned to its owner or legally disposed of.

Bailee

A person or entity in temporary possession of property belonging to another, with the responsibility of care and return.

Bailor

The owner of a chattel who delivers possession of the chattel to another in a bailment.