What Is the Average Annual Compound Rate of Return for a Fund

question 71

Multiple Choice

What is the average annual compound rate of return for a fund with the following values?

• A) 10.5%
• B) 10.8%
• C) 25.6%
• D) 32.3%

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Definitions:

Perfect Competition

A market structure characterized by a complete absence of rivalry among the producers, with many buyers and sellers, each of whom has a negligible impact on the market.

Identical Service

A service that is exactly the same in every feature and aspect when compared to another service.

Efficient Output

The level of production at which a company or economy can produce goods at the lowest possible cost per unit, maximizing the allocation of resources.

Perfect Competitor

A hypothetical firm in a perfectly competitive market that cannot influence the market price of its product and takes the market price as given.