The Geometric Mean of a Series of Returns Is Always

question 16

True/False

The geometric mean of a series of returns is always larger than the arithmetic mean, and the difference increases with the volatility of the series.

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Definitions:

Psychological Environment

The subjective perception of one's surroundings that can significantly influence mental and emotional states.

Repression

A psychological process where individuals unconsciously block out painful or unpleasant memories, thoughts, or desires.

Cognition

The process of learning and understanding obtained through mental activity, experiences, and using the senses.

Heredity

The biological process whereby genetic factors are transmitted from one generation to the next.