If You Want to Estimate the Most Likely Return on Your

question 84

Multiple Choice

If you want to estimate the most likely return on your investment for the next year,you should use the ___________ based on past data because ____________.

• A) geometric average;the arithmetic average will be biased upward.
• B) geometric average;the arithmetic average will be biased downward.
• C) arithmetic average;the geometric average will be biased upward.
• D) arithmetic average;the geometric average will be biased downward.
• E) geometric average or the arithmetic average;they are both good measures of return.

---

Definitions:

Development

A process of change and growth over time, which can be physical, cognitive, social, or emotional.

Process

A series of actions or steps taken in order to achieve a particular end.

John Gottman

A psychological researcher known for his work on marriage stability and relationship analysis through direct observations and longitudinal studies.

Divorce Rate

The statistical measure of divorces occurring annually per 1000 people in a population.