The Geometric Return on an Investment Is Approximately Equal to the Arithmetic

question 31

Multiple Choice

The geometric return on an investment is approximately equal to the arithmetic return:

• A)plus half the standard deviation.
• B)plus half the variance.
• C)minus half the standard deviation.
• D)minus half the variance.
• E)divided by two.

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Definitions:

Parsons

Talcott Parsons, an influential American sociologist known for his work on the theory of social action and for developing structural functionalism.

Adaptation

The social system must be able to gather and distribute sufficient resources and adjust to changes in its environment.

Goal Attainment

The system needs to establish clear goals and priorities.

Sympathetic Introspection

A methodological approach in which the researcher tries to understand the feelings and perspectives of others by mentally placing themselves in the other's position.