The Geometric Return on an Asset Over the Past 12

question 56

Multiple Choice

The geometric return on an asset over the past 12 years has been 14.50 percent.The arithmetic return over the same period was 14.96 percent.What is the best estimate of the average return on this asset over the next 5 years?

• A) 14.47 percent
• B) 14.67 percent
• C) 14.79 percent
• D) 14.88 percent
• E) 14.86 percent

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Definitions:

Emphysema

A chronic respiratory condition characterized by the destruction of the air sacs in the lungs, leading to breathlessness and reduced oxygen intake.

Anterior-Posterior Diameter

The measurement from the front to the back of a structure, often used in medical imaging to assess size or growth.

Hemoptysis

Coughing up blood from the respiratory tract.

Clubbing

An enlargement of the ends of the fingers and toes due to a variety of diseases, often related to respiratory or heart issues.