You Have Calculated the Historical Dollar Weighted Return,annual Geometric Average

question 57

Multiple Choice

You have calculated the historical dollar weighted return,annual geometric average return and annual arithmetic average return.You always reinvest your dividends and interest earned on the portfolio.Which method provides the best measure of the actual average historical performance of the investments you have chosen?

• A) Dollar weighted return
• B) Geometric average return
• C) Arithmetic average return
• D) Index return

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present.

Social Facilitation

The inclination of individuals to behave differently, often improving their performance, when they are around others compared to when they are by themselves.