For Log Normally Distributed Returns, the Annual Geometric Average Return

question 49

True/False

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

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Definitions:

Bushels

A measure of volume commonly used in agriculture, especially in the United States, for quantifying crops like grains, fruits, and vegetables.

Market Price

The actual price at which any commodity is available in the market, determined by supply and demand.

Profit

The financial gain achieved when the revenue from business activity exceeds its costs and expenses.

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grain, fruits, and vegetables.