The Geometric Return on an Asset Over the Past 12

question 12

Multiple Choice

The geometric return on an asset over the past 12 years has been 13.47 percent.The arithmetic return over the same period was 13.86 percent.What is the best estimate of the average return on this asset over the next 5 years?

• A)13.47 percent
• B)13.67 percent
• C)13.72 percent
• D)13.81 percent
• E)13.86 percent

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Definitions:

Monocytes

A form of leukocyte crucial to the immune system, as it evolves into macrophages and dendritic cells.

Neutrophils

A type of white blood cell that helps the body fight infections by engulfing and destroying bacteria and fungi.

Agranulocyte

Nongranular leukocyte (monocyte or lymphocyte).

Eosinophil

A type of white blood cell involved in allergic reactions and fighting parasitic infections.