The Return Earned in an Average Year Over a Multiyear

question 77

Multiple Choice

The return earned in an average year over a multiyear period is called the ________ average return.

• A) arithmetic
• B) standard
• C) variant
• D) geometric
• E) real

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Definitions:

Dividend Payout Ratio

A financial measurement that calculates the percentage of net income distributed to shareholders in the form of dividends.

Retention Ratio

A financial metric indicating the percentage of a company's income retained and reinvested after dividends are paid to shareholders.

Debt-Equity Ratio

A ratio indicating the finance strategy of mixing shareholders' equity and debt for asset acquisition.

Profit Margin

A financial performance metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.