Suppose a Particular Investment Earns an Arithmetic Return of 10

question 28

Multiple Choice

Suppose a particular investment earns an arithmetic return of 10% in year 1,20% in year 2 and 30% in year 3.The geometric average return for the year period will be __________.

• A)greater than the arithmetic average return
• B)equal to the arithmetic average return
• C)less than the arithmetic average return
• D)equal to the market return
• E)cannot tell from the information given

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Definitions:

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions and the emotions of others.

Relationship Management

Strategies and practices for maintaining, improving, and leveraging relationships with both current and potential clients, stakeholders, or partners.

Negative Situation

An adverse or undesirable circumstance or event that can cause stress, harm, or challenge.

Cultural Script

Implicit social norms and patterns of behavior that are learned and shared within a cultural group, guiding interactions and expectations.