Which of the Following Is the Easiest to Compute

question 132

Multiple Choice

Which of the following is the easiest to compute?

• A)The arithmetic mean.
• B)The median.
• C)The mode.
• D)The geometric mean.

---

Definitions:

Single-Index Structure

An investment model that relates the returns on a stock to the returns on a common market index using a linear relationship.

Expected Returns

The anticipated profit or loss from an investment over a specific period, based on historical or projected performance.

Sensitivity Coefficients

Numbers that measure how much a dependent variable changes when an independent variable changes by one unit, often used in financial models to gauge risk.

Single-Index Structure

A model used in finance to describe the performance of assets in relation to a single market index, capturing the proportion of an asset's risk and return that can be explained by the market index.