Which of the Following Is the Best Definition for the Concept

question 4

Multiple Choice

Which of the following is the best definition for the concept of arithmetic average return?

• A) The return earned in an average year over a multi-year period.
• B) The hypothesis is that actual capital markets are efficient.
• C) The average squared deviation between the actual return and the average return.
• D) Statistical measure of maximum loss used by banks and other financial institutions to manage risk exposures.
• E) The positive square root of the variance.

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Definitions:

Soda

A sweet, carbonated beverage, often flavored and containing caffeine and other additives.

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A cognitive bias that occurs when an individual, knowing something, finds it hard to think about the subject from the perspective of someone less knowledgeable.

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The likelihood or tendency to be influenced or harmed by a particular thing or condition.

Egocentrism

The inability to differentiate between self and other, often resulting in viewing the world solely from one's own perspective.