Historically,the Average Arithmetic Return of Parametric Design Company Has Been

question 29

Multiple Choice

Historically,the average arithmetic return of Parametric Design Company has been 12%.If the returns have been normally distributed with a variance of 6%,the geometric average return on this stock has been _________.

• A) 4%
• B) 8%
• C) 12%
• D) 9%
• E) none of these

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Definitions:

Financial Theories

Concepts and models that explain how financial markets operate, including how securities are priced and how financial decisions impact markets.

IPO

stands for Initial Public Offering, the process by which a private company goes public by offering its shares to the general public for the first time.

Bargaining Power

The capability of one party in negotiations to influence the terms and conditions in their favor.

Cash Flow

The total amount of money being transferred into and out of a business, considered essential for maintaining operations and fulfilling financial commitments.