Suppose You Earned an Arithmetic Return on a Stock of Exactly10

question 49

Multiple Choice

Suppose you earned an arithmetic return on a stock of exactly10% every year for 10 years.The geometric average return on the stock will be _________.

• A) greater than the arithmetic average return
• B) equal to the arithmetic average return
• C) less than the arithmetic average return
• D) indeterminable
• E) none of these

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Definitions:

Proposition

A statement or assertion that expresses a judgement or opinion, which can be deemed true or false.

Converse

The statement that reverses the elements of another statement, often in the context of propositions or conditional statements.

Proposition

Proposition is a statement or assertion that expresses a judgment or opinion that can be either true or false.

Hypothetical Proposition

A conditional statement that posits a relationship between two statements, stipulating that if one statement is true, then so is another.