The Geometric Average Rate of Return Is Based on

question 32

Multiple Choice

The geometric average rate of return is based on

• A) the market's volatility.
• B) the concept of expected return.
• C) the standard deviation of returns.
• D) the CAPM.
• E) the principle of compounding.

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Definitions:

Purchases Journal

A specialized accounting journal used to record all purchasing transactions, particularly on account.

Record Purchase

The accounting process of recording the buying of goods or services in the financial records of a company.

Accounts Receivable Subsidiary Ledger

The subsidiary ledger containing the individual accounts with customers.

Cash Receipt Posting

Cash receipt posting involves recording the receipt of money into the financial records of a business, often marking the payment of an invoice or sale.