The Geometric Average Annual Return for a Large Capitalization Stock

question 34

Multiple Choice

The geometric average annual return for a large capitalization stock portfolio is 10% for ten years and 6% per year for the next five years. The geometric average annual return for the entire 15 year period is ________.

• A) 9.08%
• B) 8.65%
• C) 8.22%
• D) 9.52%

Understand the concept of insurance on bank accounts by a government agency.

Reconcile discrepancies between bank statements and personal accounting records.

Compare the effects of different compounding intervals on the growth of investments.

Calculate the necessary monthly deposit to reach a retirement goal based on interest rates and compounding intervals.

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Definitions:

Sender

The party in communication who initiates the message to the receiver, conveying information, ideas, or feelings.

Consumer

An individual who purchases goods and services for personal use.

Encoding

The process of converting the sender’s ideas into a message, which could be verbal, visual, or both.

Pictures

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