The Geometric Mean Return on Large-Company Stocks for the 1926-2009

question 84

Multiple Choice

The geometric mean return on large-company stocks for the 1926-2009 period:

• A) is approximately equal to the arithmetic mean return plus one-half of the standard deviation.
• B) exceeds the arithmetic mean return.
• C) is approximately equal to the arithmetic mean return minus one-half of the standard deviation.
• D) is approximately equal to the arithmetic mean return plus one-half of the variance.
• E) is less than the arithmetic mean return.

---

Definitions:

Economic Institution

An established organization or system that plays a role in the distribution and consumption of goods and services within an economy.

Social Responsibility Strategy

A company’s plan or approach to contributing positively to societal goals, through sustainable business practices and ethical contributions.

Denying Responsibility

The act of refusing to accept blame or accountability for one's actions or decisions, often deflecting onto others.

Resisting Change

The opposition or reluctance to alter existing conditions or practices.