The Value Line Index Is an Equally-Weighted Geometric Average of the Returns

question 53

Multiple Choice

The Value Line Index is an equally-weighted geometric average of the returns of about 1,700 firms. The value of an index based on the geometric average returns of three stocks where the returns on the three stocks during a given period were 32%, 5%, and −10%, respectively, is

• A) 4.3%.
• B) 7.6%.
• C) 9.0%.
• D) 13.4%.
• E) 5.0%.

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Definitions:

Transmit Moods

The process by which individuals' emotional states are communicated and can influence the feelings and attitudes of those around them.

Transactional Leadership

A leadership style that focuses on the exchange process between leaders and followers, where followers are rewarded for meeting specific goals or performance criteria.

Reward Compliant

The act of providing incentives or rewards to individuals or groups to encourage behavior that conforms to rules, standards, or expectations.

Adaptive Employees

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