When Will the Geometric Average Annual Rate of Return Be

question 33

Multiple Choice

When will the geometric average annual rate of return be equal to the arithmetic average annual rate of return?

• A)when all the annual returns are either positive or zero
• B)when there is no variability in the annual returns
• C)The geometric average annual rate of return will never equal the arithmetic average annual rate of return.
• D)when all the annual returns are positive

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Definitions:

Interaction Effects

Refers to the phenomenon where the effect of one variable on a particular outcome is different depending on the level of another variable.

Relationship

The method by which several concepts, items, or people interact, or the situation of being interconnected.

Main Effect

In the context of experimental design, it refers to the primary impact of an independent variable on a dependent variable, ignoring other variables.

Interaction Effect

Occurs when the effect of one independent variable on the dependent variable changes based on the level of another independent variable.