Suppose a Particular Investment Earns an Arithmetic Return of 10

question 28

Multiple Choice

Suppose a particular investment earns an arithmetic return of 10% in year 1,20% in year 2 and 30% in year 3.The geometric average return for the year period will be __________.

• A)greater than the arithmetic average return
• B)equal to the arithmetic average return
• C)less than the arithmetic average return
• D)equal to the market return
• E)cannot tell from the information given

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Definitions:

Organized

The ability to arrange or structure things in a systematic way, making it easier to find, use, or keep track of them.

Peak Performer

An individual who consistently achieves top performance levels in their field of activity through dedication and skill refinement.

Discipline

The practice of training oneself to follow rules or a code of behavior, often using self-control or punishment to correct disobedience.

Disciplined

Exhibiting self-control and a commitment to following rules or a strict regime, often in the pursuit of a goal or maintaining order.