The Geometric Average Annual Return for a Large Capitalization Stock

question 67

Multiple Choice

The geometric average annual return for a large capitalization stock portfolio is 12% for ten years and 5% per year for the next five years.The geometric average annual return for the entire 15-year period is:

• A)9.95%
• B)9.62%
• C)9.11%
• D)10.23%

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Definitions:

Emotional Disturbance

A condition characterized by significant difficulties in emotional regulation, leading to problems in social, educational, or occupational functioning.

Communicate

The process of sharing or exchanging information, feelings, or ideas through speech, writing, gestures, or other means.

Shaping

A method of teaching new behaviors by using reinforcement until the target behavior is achieved, often through successive approximations.

Partial Reinforcement

A conditioning process in which a reward is not administered every time the desired action is performed, leading to more resistant behavior to extinction.