Even Though the Simple Arithmetic Average Does Not Consider Compounding,it

question 67

True/False

Even though the simple arithmetic average does not consider compounding,it is useful for determining the average return for a group of investments at one point in time.

---

Definitions:

Reasonable Person

A reasonable person is a legal standard used to represent a hypothetical person who exercises average care, skill, and judgment in conduct, serving as a comparative standard in negligence cases.

Law of Torts

A component of civil law dealing with the compensation of victims for harm caused by someone’s negligence or intentional acts.

Standard of Care

The degree of attentiveness, caution, and prudence that a reasonable person in the circumstances would exercise.

Sixteen-Year-Old

A term generally referring to an individual who is 16 years of age.