An Investment Had the Following 4 Year Returns: -8%, 15

question 43

Multiple Choice

An investment had the following 4 year returns: -8%, 15%, 10% and -5%. Determine the average annual rate of return.

• A) 2.54%
• B) 3.61%
• C) 3.85%
• D) 4.03%
• E) 4.92%

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Definitions:

Main Effect

The main effect is the impact of an independent variable on a dependent variable in a statistical model, ignoring other variables' influences.

Factor A

Factor A is often used in experimental design to represent one of the independent variables being tested for its effect on a dependent variable.

Reject

In statistical analysis, to refuse to accept a null hypothesis, based on the outcome of a test showing that observed data is unlikely under the hypothesis.

Null Hypothesis

A default hypothesis that there is no significant effect or difference, used as a starting point for statistical hypothesis testing.