The Geometric Return on an Asset Is Approximately Equal to the Arithmetic

question 75

Multiple Choice

The geometric return on an asset is approximately equal to the arithmetic return:

• A) Plus one-half the standard deviation
• B) Plus one-half the variance
• C) Minus one-half the standard deviation
• D) Minus one-half the variance
• E) Times one-half

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Definitions:

Weight on the Future

This key-term may refer to the emphasis or consideration given to future outcomes or consequences in decision-making processes.

Canalization

A concept in genetics and developmental biology referring to the ability of an organism to produce the same phenotype regardless of variability in its environment or genotype.

Myelination

The coating of axons with myelin.

Differentiation

The processes by which behaviors and physical structures become specialized.