The Geometric Mean Return on Large-Company Stocks for the 1926-2018

question 71

Multiple Choice

The geometric mean return on large-company stocks for the 1926-2018 period:

• A)is approximately equal to the arithmetic mean return plus one-half of the standard deviation.
• B)exceeds the arithmetic mean return.
• C)is approximately equal to the arithmetic mean return minus one-half of the standard deviation.
• D)is approximately equal to the arithmetic mean return plus one-half of the variance.
• E)is less than the arithmetic mean return.

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