The Geometric Mean Return on Large-Company Stocks for the 1926-2015

question 67

Multiple Choice

The geometric mean return on large-company stocks for the 1926-2015 period:

• A) is approximately equal to the arithmetic mean return plus one-half of the standard deviation.
• B) exceeds the arithmetic mean return.
• C) is approximately equal to the arithmetic mean return minus one-half of the standard deviation.
• D) is approximately equal to the arithmetic mean return plus one-half of the variance.
• E) is less than the arithmetic mean return.

---

Definitions:

Photoelectric Sensor

A device that uses light to detect the presence, absence, or distance of an object.

Transmitter

A device that sends signals, often converted from physical measurements, to other instruments or systems for monitoring or control purposes.

Light Sensor

A device that detects light and converts it into an electrical signal.