The Return Earned in an Average Year Over a Multiyear

question 77

Multiple Choice

The return earned in an average year over a multiyear period is called the ________ average return.

• A) arithmetic
• B) standard
• C) variant
• D) geometric
• E) real

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Definitions:

Cash

A form of currency that includes coins and paper notes, which is used as a medium of exchange for goods and services.

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims against the company's assets.

Common Stock Dividend

A portion of a company's earnings distributed to holders of its common stock, typically in the form of cash or additional shares.