The Arithmetic Average Return Is Defined as the _____ Over

question 330

Multiple Choice

The arithmetic average return is defined as the _____ over a multiyear period.

• A) average rate of return earned per year
• B) return earned in an average year
• C) compound return earned
• D) square root of the compound return earned
• E) average compound return earned per year

---

Definitions:

Special Provisions

Specific clauses or terms added to agreements or contracts that tailor requirements or conditions to particular circumstances.

Consumption Tax

A consumption tax is a tax on the purchase of goods or services, levied at the point of sale, aimed at reducing consumption and raising revenues for governments.

Incentive

A factor, either monetary or non-monetary, that motivates individuals or entities to behave in a certain way.

Tax Evasion

The illegal practice of not paying taxes by individuals or businesses through various means, including underreporting income or inflating deductions.