Identify the Most Correct Statement with Regards to an Event

question 16

Multiple Choice

Identify the most correct statement with regards to an event.

• A)An event identified by management will occur.
• B)An event identified by management may or may not occur.
• C)An event identified by management may not trigger other events.
• D)It is easy to determine which events are most likely to occur.

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Definitions:

Dollar-Weighted Return

An investment's return that takes into account the timing and amount of capital inflows and outflows, reflecting the investor's actual experienced rate of return.

Geometric Average Return

is a method of calculating the average rate of return on an investment that accounts for the effects of compounding, typically lower than the arithmetic average return.

Arithmetic Average Return

The simple mean of a series of returns generated over a period of time.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and amount of cash flows into the investment.