For the Two Questions Below, Consider the Following Period-By-Period Total

question 30

Multiple Choice

For the two questions below, consider the following period-by-period total returns:
Year 1: 5.00%
Year 2: 15.00%
Year 3: 25.00%
-What is the geometric average total return per year for the Years 1-3 period?

• A) 5.00%
• B) 14.71%
• C) 15.00%
• D) 15.23%
• E) 45.00%

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Definitions:

Kilo-

A prefix in the metric system representing one thousand (1000) of the unit it precedes.

Decimal

Numbers that are expressed as a fraction of a part using 10 as its base number; it also refers to the period used to separate a whole number from a fraction, as in 10.2, otherwise read as “ten and two-tenths.”

Fraction

A numerical quantity that is not a whole number, representing a part of a whole.

Base Number

A mathematical value serving as a foundational digit in a numbering system, determining its counting process, such as 2 in binary or 10 in decimal.