For Log Normally Distributed Returns, Annual Compound Returns Equal

question 82

Multiple Choice

For log normally distributed returns, annual compound returns equal

• A)the arithmetic average return minus half the variance.
• B)the arithmetic average return plus half the variance.
• C)the arithmetic average return minus half the standard deviation.
• D)the arithmetic average return plus half the standard deviation.

---

Definitions:

Developmental Stages

Periods of life characterized by specific physical, psychological, and emotional changes that people typically undergo.

Storming

A stage in group development characterized by conflict and competition as team members work to establish norms and structures.

Therapeutic

Relating to the healing of disease or maintenance of health, often used in the context of treatments, interventions, or environments designed to promote well-being.

Professional

Relating to a job that requires specialized knowledge and often intensive academic education.