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.

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Definitions:

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Steel that has been processed through a series of rollers at high temperatures to achieve a specific shape and thickness.

Automaker

A company that manufactures automobiles, including cars, trucks, and other vehicles.

Straight Rebuys

Recurring purchases of the same goods or services without significant modification or consideration of new suppliers, typically routine for businesses.

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The process of discussing and determining the terms of a contract between two or more parties, aiming to reach a mutual agreement that benefits all involved.