The Geometric Average Quarterly Return of ROM Company Was 5

question 63

Multiple Choice

The geometric average quarterly return of ROM Company was 5.0% for the previous year.What was the return for the third quarter if the returns for the first, second, and fourth quarters were 10.0%, -9.05%, and 8.0%, respectively?

• A)-6.18%
• B)-7.05%
• C)11.05%
• D)12.50%

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Definitions:

Perfect Competitor

An ideal market condition where numerous small firms compete against each other, and goods are sold at their marginal cost.

Long Run

A period in economic theory where all factors of production and costs are variable, allowing companies to adjust to market conditions fully.

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit from the market are easy, and no single seller can influence the market price.

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.