Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) The compounded geometric average return is most often used for comparative purposes.
• B) We should use the arithmetic average return when we are trying to estimate an investment's expected return over a future horizon based on its past performance.
• C) The geometric average return will always be above the arithmetic average return and the difference grows with the volatility of the annual returns.
• D) The geometric average return is a better description of the long-run historical performance of an investment.

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Definitions:

Narcissism

A personality trait characterized by an exaggerated sense of self-importance, need for admiration, and lack of empathy.

Autonomy Needs

A psychological need that drives individuals to pursue independence and self-regulation in their actions and decisions.

Positive Feelings

Emotions and sensations that are pleasant, uplifting, and contribute to an individual's sense of well-being and happiness.

Physical Health

Refers to the overall condition of an individual's body, including the absence of disease, physical fitness, and the ability to perform daily tasks.