Your Timing Was Good Last Year

question 42

Multiple Choice

Your timing was good last year.You invested more in your portfolio right before prices went up and you sold right before prices went down.In calculating historical performance measures which one of the following will be the largest?

• A) Dollar weighted return
• B) Geometric average return
• C) Arithmetic average return
• D) Mean holding period return

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Definitions:

Mental Health Problems

Mental health problems encompass a wide range of psychological issues that can affect an individual's thinking, behavior, and emotion, impacting daily functioning and well-being.

Drug Therapy

The treatment of disease and prevention of symptoms by using pharmaceutical drugs to directly target and affect bodily processes.

Limitations

Restrictions or constraints that limit or define the boundaries of possibilities or actions.

Justification of Effort Effect

A cognitive bias that leads individuals to value an outcome more if they had to put effort into achieving it.