The Mean Return Computed by Finding the Equivalent Return That

question 65

Multiple Choice

The mean return computed by finding the equivalent return that is compounded for N periods is ________.

• A) dollar return
• B) geometric returns
• C) average return
• D) percentage return

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Definitions:

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The fund is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.

Post Retirement

The phase of life after an individual has ended their professional career, often focusing on leisure, personal interests, and potentially part-time work.

Social Security Benefits

Social Security Benefits are payments made to qualified retirees and disabled people, and to their spouses, children, and survivors.

Withholdings

The portion of an employee's earnings withheld by the employer for the purpose of paying taxes or other deductions.