The Two Most Common Calculations Investors Use to Measure Return

question 29

True/False

The two most common calculations investors use to measure return performance are arithmetic means and geometric means.

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Definitions:

Monetary Policy

Actions taken by a central bank, currency board, or other regulatory authorities to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Economy Regulation

The imposition of rules by the government intended to modify the economic behavior of individuals, firms, or industries to achieve policy outcomes.

Unfunded Liability

A financial obligation or promised benefit for which sufficient funds have not been set aside, often relating to pensions or other post-employment benefits.

U.S. Federal Government

The national government of the United States, consisting of three branches: legislative, executive, and judicial.