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For Log Normally Distributed Returns, the Annual Geometric Average Return

question 49

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For log normally distributed returns, the annual geometric average return is greater than the arithmetic average return.


Definitions:

Unmotivated

Describes a lack of desire or willingness to take action or exert effort towards goals.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or character rather than to situational factors.

Situational Attribution

Refers to the process of attributing a person's behavior to external factors, such as the situation or environment they are in.

Cognitive Dissonance

The uneasy feeling that arises in someone when they possess multiple conflicting beliefs, ideas, or values simultaneously.

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