The Average Compound Return Earned Per Year Over a Multiyear

question 78

Multiple Choice

The average compound return earned per year over a multiyear period is called the ________ average return.

• A) arithmetic
• B) standard
• C) variant
• D) geometric
• E) real

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Definitions:

Straight-Line Depreciation

A procedure for assigning the cost of a solid asset over its productive lifetime in equal annual figures.

Marginal Tax Rates

The rate at which an individual or corporation's next dollar of taxable income is taxed.

Pre-Tax Loan Rate

The interest rate on a loan before taking into account any tax deductions that might apply.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.