The Arithmetic Average Return Is the Return Earned in an Average

question 90

Multiple Choice

The arithmetic average return is the return earned in an average year over a multi-year period. For calculation you:

• A) Add up all the returns and divide by the number of observations minus one.
• B) Add one to each return, multiply these values, find the 1/n root, and subtract one.
• C) Subtract the lowest return from the highest return.
• D) Add up all the returns and divide by the number of observations.
• E) Find the return that is exactly in the middle of the highest and lowest return.

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Definitions:

Economic Harm

Financial or monetary damage suffered by an individual, organization, or economy due to certain actions, events, or policies.

Pecuniary Harm

Financial damage suffered by an individual or entity, referring to actual losses of money or property.

Economic Loss

A financial deficit suffered by a person or entity, often measured as the difference between actual earnings and expected earnings.

Trespass to Real Property

An unlawful entry onto land by a person without the permission of the owner, resulting in a legal violation.