-The Value of an Investment at the End of Each

question 6

Multiple Choice

$\begin{array}{|c|c|}\hline \text { Year } & \begin{array}{c}\text { Return } \\\mathbf{( \% ) }\end{array} \\\hline \text { Year } 1 & 7 \% \\\hline \text { Year } 2 & 17 \% \\\hline \text { Year } 3 & -2.4 \% \\\hline \text { Year } 4 & 2 \% \\\hline\end{array}$
-The value of an investment at the end of each of four years is shown above.What is the geometric average return over the four years?

• A) \(4.0 \%\)
• B) \(4.6\%\)
• C) \(5.26 \%\)
• D) \(5.66 \%\)

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Definitions:

Social Insurance

Government-provided insurance, typically funded through taxation, that covers individuals against economic risks (e.g., unemployment, disability).

Poverty Rate

The percentage of a population living below the national poverty line, reflecting the proportion of society facing economic hardship.

In-Kind Transfers

Non-cash benefits provided to individuals, often in the form of goods or services, such as food stamps or housing assistance.

Poverty Rate

The proportion of the population living below the poverty line, indicating the level of economic hardship in a society.