Suppose That an Investment Gave a Realised Return of 20

question 38

Multiple Choice

Suppose that an investment gave a realised return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is

• A) 11.20%.
• B) 16.55%.
• C) 9.70%.
• D) 14.96%.

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