The Average Compound Return Earned Per Year Over a Multi-Year

question 82

Multiple Choice

The average compound return earned per year over a multi-year period when inflows and outflows are considered is called the:

• A) total return.
• B) average capital gains yield.
• C) dollar-weighted average return.
• D) arithmetic average return.
• E) geometric average return.

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Definitions:

Chattel

Personal property that can be moved from one place to another, such as furniture or vehicles.

Intangible Personal Property

Property that does not have a physical presence but holds value, such as patents, copyrights, trademarks, and financial assets.

Substance

A fundamental or essential component of a matter; often refers to the material from which something is made.

Gift Causa Mortis

A gift made in contemplation of imminent death where the giver transfers personal property to another, with the gift becoming permanent if the giver dies as contemplated.