You Have Owned a Stock for Seven Years

question 48

Multiple Choice

You have owned a stock for seven years. The geometric average return on this investment for those seven years is positive even though the annual rates of return have varied significantly. Given this, you know the arithmetic average return for the period is:

• A)positive but less than the geometric average return.
• B)less than the geometric return and could be negative, zero, or positive.
• C)equal to the geometric average return.
• D)either equal to or greater than the geometric average return.
• E)greater than the geometric average return.

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Definitions:

Association

A cognitive connection between ideas, feelings, or memories.

Motor Areas

Regions of the brain responsible for the planning, control, and execution of voluntary movements.

Neuronal Pruning

The process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Inefficient Connections

Links or relationships that fail to utilize resources or energy in an effective manner.