Calculate the Geometric Return of an Investment with Five Year

question 106

Multiple Choice

Calculate the geometric return of an investment with five year returns of 15%, 10%, 5%, (5%) and (10%) .

• A) 13.57%
• B) 11.38%
• C) 9.41%
• D) 5.23%
• E) 3.00%

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Definitions:

Substitutes

Products or services that can be used in place of each other based on their utility.

Price Elasticity

Price elasticity measures how the quantity demanded of a good is affected by a change in its price, with high elasticity indicating sensitivity to price changes.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.