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:

Mere Exposure Effect

The phenomenon that repeated exposure to novel stimuli increases liking of them.

Other-Race Effect

The tendency to recall faces of one’s own race more accurately than faces of other races. Also called the cross-race effect and the own-race bias.

Explicit and Implicit Attitudes

Explicit attitudes are conscious beliefs that can guide decisions and behavior, while implicit attitudes are unconscious beliefs that can influence actions and perceptions.

Stereotypes

Widely held but fixed and oversimplified images or ideas about a particular type of person or thing.