Which One of the Following Should Be Used as the Mean

question 14

Multiple Choice

Which one of the following should be used as the mean return when you are defining the normal distribution of an investment's annual rates of return?

• A)arithmetic average return for the period
• B)geometric average return for the period
• C)total return for the period divided by N − 1
• D)arithmetic average return for the period divided by N − 1
• E)geometric average return for the period divided by N − 1

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Definitions:

Osmotic Pressure

The pressure required to prevent the flow of a solvent into a solution through a semipermeable membrane, driven by differences in solute concentration.

Selectively Permeable Membrane

A barrier that allows certain molecules or ions to pass through it by diffusion and occasionally specialized processes.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to a region of higher solute concentration to equalize the concentrations on both sides of the membrane.

Active Transport

Transport of molecules across the membrane of a cell from areas where they are less concentrated to areas where they are more concentrated, which demands energy.