The Value Line Index Is an Equally Weighted Geometric Average

question 71

Multiple Choice

The Value Line Index is an equally weighted geometric average of the returns of about 1,700 firms.The value of an index based on the geometric average returns of 3 stocks where the returns on the 3 stocks during a given period were 32%,5%,and -10%,respectively,is __________.

• A)4.3%
• B)7.6%
• C)9.0%
• D)13.4%
• E)5.0%

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Definitions:

Authoritative

A leadership or parenting style characterized by high demands and high responsiveness, where guidance and support are balanced with clear standards and structure.

Permissive

An adjective describing an approach or policy that allows or tolerates behaviors that might be restricted in more controlled environments.

Adopted Children

Individuals who have been legally taken and raised by parents who are not their biological parents.

Authoritarian

An authoritarian refers to a governing or leadership style characterized by absolute or blind obedience to authority, as against individual freedom and related to centralized power.