You Have Calculated the Historical Dollar-Weighted Return, Annual Geometric Average

question 17

Multiple Choice

You have calculated the historical dollar-weighted return, annual geometric average return, and annual arithmetic average return. If you desire to forecast performance for next year, the best forecast will be given by the ________.

• A) dollar-weighted return
• B) geometric average return
• C) arithmetic average return
• D) index return

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Definitions:

Electricity Futures

Financial contracts obligating the buyer to purchase, and the seller to sell, a specified amount of electricity at a predetermined price and future date.

Weather Futures

Financial contracts that allow market participants to hedge against or speculate on weather events, such as temperature or precipitation levels.

Fashion Futures

Fashion Futures is a term that can refer to the exploration of future trends, innovations, and sustainability practices within the fashion industry, focusing on long-term design and production strategies.

Entertainment Futures

Futures contracts based on the box office performance of movies or other entertainment events, allowing investors to speculate on their financial success.