When Should an Investor Use the Arithmetic Mean Return? the Geometric

question 28

Essay

When should an investor use the arithmetic mean return? The geometric mean return?

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Definitions:

Intellectual Property

Rights obtained through intellectual work in sectors such as industry, science, literature, and the arts.

Proactive

Taking action by causing change and not only reacting to change when it happens.

Social Pressures

The influence exerted by society or groups within it, pushing individuals towards certain behaviors or decisions.

Supranational Laws

Laws that operate above the national levels, established by agreements between nations, and which have binding legal power over the member states.