For Log Normally Distributed Returns, the Annual Geometric Average Return

question 49

True/False

For log normally distributed returns, the annual geometric average return is greater than the arithmetic average return.

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Definitions:

Matrix Structure

An organizational design that combines two or more types of structures, typically functional and divisional, to leverage the benefits of both.

Project Teams

Groups of individuals brought together to accomplish a specific project or objective within a limited time frame.

Functional Structure

An organizational design that groups employees based on their functions or areas of expertise within the company.

Organizational Design

The process of structuring an organization's roles, responsibilities, and systems to effectively achieve its goals and adapt to environmental changes.