You Have Calculated the Historical Dollar Weighted Return,annual Geometric Average

question 57

Multiple Choice

You have calculated the historical dollar weighted return,annual geometric average return and annual arithmetic average return.You always reinvest your dividends and interest earned on the portfolio.Which method provides the best measure of the actual average historical performance of the investments you have chosen?

• A) Dollar weighted return
• B) Geometric average return
• C) Arithmetic average return
• D) Index return

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Definitions:

Simulation Process

A technique for modeling the operation of a real-world process or system over time, often used for analysis or training purposes.

HR Demand

Refers to the number and type of employees an organization needs to meet its current and future goals.

Forecasting

Estimation of future occurrences or trends using statistical methods and historical data.

HR Demand Forecasting

The process of estimating the future human resource requirements of an organization to achieve its goals.